Search results
- DictionaryLet·ter of cred·it
noun
- 1. a letter issued by a bank to another bank (typically in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.
Powered by Oxford Languages
Mar 6, 2024 · A letter of credit, or a credit letter, is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.
A Letter of Credit is a form of guarantee issued by a bank on behalf of its client. An LC is used when trust between counterparties is hard to quantify. The instrument is especially common in global trade among partners in different countries.
May 30, 2022 · A letter of credit is a written agreement between seller, buyer, and banks regarding terms and conditions of payment for goods or services. Letters of credit help to minimize risk for both the buyer and seller and are prevalent in international trade.
Sep 6, 2023 · letter of credit. : a document issued to a beneficiary at the request of the issuer's customer in which the issuer (as a bank) promises to honor a demand for payment by the beneficiary in order to satisfy or secure the customer's debt compare guaranty.
Mar 7, 2024 · A letter of credit is an assurance or guarantee to sellers that they will be paid for a large transaction. Letters of credit are particularly common in international...
Oct 29, 2021 · A letter of credit (LOC) is a bank document that guarantees a payment. See how LOCs work, learn the terminology, and get examples of how they're used.
