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LC Refinancing is nothing but LC loan.
If you are the Applicant, your bank (Issuing Bank) will pay the invoice amount (Fully/Partly) to Beneficiary and you have to repay at maturity date (As per your facility offer from bank) with Interest.
When the required amount as per LC terms to be recovered from LC applicant (their client), then various banks giving facilities to their reliable clients (creating an other room called "Re-Financing" to deffer such payment for aspecific time.
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