Definition of letter of credit in English:
A letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.
- By way of illustration, take a case in which the customer requests the bank, or other institution, to issue a letter of credit or guarantee to back his purchase of goods.
- A letter of credit is issued by a bank and guarantees payment to the exporter at a specified time, generally, thirty, sixty, or ninety days, on behalf of the importer.
- The Government provided a guarantee for banks' deposit and other claims, such as borrowing, guarantee and letters of credit issued by the banks.
Definition of letter of credit in:
- US English dictionary
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.
Most popular in the US
Most popular in the UK
Most popular in Canada
Most popular in Australia
Most popular in Malaysia
Most popular in Pakistan