Cambridge Dictionaries online Cambridge Dictionaries online

The most popular online dictionary and thesaurus for learners of English

English definition of “letter of credit”

See all translations

letter of credit

noun [C]
 
 
( plural letters of credit) ( abbreviation L/C)
FINANCE, COMMERCE a financial document in which a bank formally promises to pay a particular amount of money into the bank of a person selling goods if the goods are delivered by an agreed date and in an acceptable condition. Buyers often use letters of credit to buy goods from other countries: The bank issued the letter of credit on the instructions of the importer. For export sales, the price of the goods are secured by a letter of credit.
FINANCE in a situation in which bonds, etc. are sold, a written promise by a bank to pay the lender if the borrower is unable to do so: The notes are secured by bank letters of credit.
→  See also confirmed letter of credit , documentary letter of credit , irrevocable letter of credit , confirmed letter of credit , standby letter of credit
Translations of “letter of credit”
in Chinese (Traditional) 信用狀…
in Chinese (Simplified) 信用证…
(Definition of letter of credit from the Cambridge Business English Dictionary © Cambridge University Press)
What is the pronunciation of letter of credit?
Add Cambridge dictionaries to your browser to your website

Definitions of “letter of credit” in other dictionaries

Word of the Day

thug

a man who acts violently, especially to commit a crime

Word of the Day

The way we move (Verbs for walking and running)

by Kate Woodford,
March 25, 2015
​​​ This week we’re looking at interesting ways to describe the way that people move. Most of the verbs that we’ll be considering describe how fast or slow people move. Others describe the attitude or state of mind of the person walking or running. Some describe both. Starting with verbs for walking slowly,

Read More 

crossfit noun

March 23, 2015
high-intensity strength training Two women in strappy dresses discussed how much weight they could snatch

Read More