A Documentary Letter of Credit (DLC) is a highly secure payment method used in international trade. It guarantees that a seller will receive payment as long as they comply with the terms outlined in the letter. Issued by a bank, this financial instrument ensures that payment is made to the seller upon the presentation of specified documents, such as shipping and insurance documents, which prove the goods have been shipped as agreed. DLCs mitigate the risk for both buyers and sellers, facilitating smooth and secure transactions across borders.