"LC" is an abbreviation for Letter of Credit, meaning Letter of Credit. A doctor-prescribed LC may be a type of letter of credit issued by a healthcare organization to a drug manufacturer or medical equipment supplier. This type of voucher is usually issued to ensure the security and convenience of the healthcare organization in obtaining the required medicines or equipment, as well as to reduce the operating costs of the healthcare organization. LCs issued by doctors are an important part of the hospital purchasing process, and help to ensure that medical institutions purchase good quality and reasonably priced drugs and equipment.
In addition to doctor-prescribed LC, LC is also a common payment method in international trade. LC can be regarded as a letter of guarantee of payment method issued by the buyer to the seller, which is a security guarantee for the deposit and final payment between buyer and seller, and the use of LC can help to reduce the risk of buyer and seller, and is beneficial to the two sides to establish a reliable relationship of business reputation. At the same time, LC can also be used to carry out investment and financing activities in the international market, providing important support for the development of international trade.
However, over-reliance on LC may also bring some risks to companies. For example, some companies may make LCs pretending to be "fake", which involve dishonest merchants, leading to risks in business contracts. Therefore, if a company does not fully understand and grasp the details of the payment guarantee method when using LC, it may encounter unexpected losses. Therefore, when using LC, companies need to keep strict control over the terms and conditions of using LC while ensuring safety.