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

ellipsis

a situation in which words are left out of a sentence but the sentence can still be understood

Word of the Day

Euphemisms (Words used to Avoid Offending People)

by Kate Woodford,
March 04, 2015
​​​ We recently looked at the language that we use to describe lies and lying. One area of lying that we considered was ‘being slightly dishonest, or not speaking the complete truth’. One reason for not speaking the complete truth is to avoid saying something that might upset or offend people. Words and

Read More 

snapchat verb

March 02, 2015
to send someone a message using the photomessaging application Snapchat We used to have a thing until he got a girlfriend. now

Read More