letter of credit Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “letter of credit” in the English Dictionary

"letter of credit" in British English

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letter of creditnoun [C]

uk   us  
a ​letter from a ​bankallowing the ​person who has it to take a ​particularamount of ​money from a ​bank in another ​country
(Definition of letter of credit from the Cambridge Advanced Learner’s Dictionary & Thesaurus © Cambridge University Press)

"letter of credit" in Business English

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letter of creditnoun [C]

uk   us   (plural letters of credit) ( abbreviation L/C)
FINANCE, COMMERCE a ​financialdocument in which a ​bankformally promises to ​pay a particular ​amount of ​money into the ​bank of a ​personsellinggoods if the ​goods are ​delivered by an ​agreeddate and in an acceptable ​condition. Buyers often use ​letters of ​credit to ​buygoods from other countries: The ​bankissued the ​letter of ​credit on the ​instructions of the ​importer. For ​exportsales, 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 ​bankletters of ​credit.
(Definition of letter of credit from the Cambridge Business English Dictionary © Cambridge University Press)
Translations of “letter of credit”
in Chinese (Simplified) 信用证…
in Chinese (Traditional) 信用狀…
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“letter of credit” in Business English

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