letter of credit - definition in the Business English Dictionary - Cambridge Dictionaries Online

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English definition of “letter of credit”

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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)
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