letter of credit

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Related to credit, letter of: bill of lading, line of credit, Irrevocable letter of credit, Standby Letter of Credit

letter of credit

n. pl. letters of credit Abbr. L/C
A letter issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank, its branches, or other associated banks or agencies.

letter of credit

n
1. (Banking & Finance) a letter issued by a bank entitling the bearer to draw funds up to a specified maximum from that bank or its agencies
2. (Banking & Finance) a letter addressed by a bank instructing the addressee to allow the person named to draw a specified sum on the credit of the addressor bank

let′ter of cred′it


n.
1. a document issued by a banker allowing the person named to draw money to a specified amount.
2. a letter from a bank notifying a person that drafts on the issuer have been authorized up to a specified amount.
[1635–45]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.letter of credit - a document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit
credit - money available for a client to borrow
commercial letter of credit - a letter of credit given to a business concern for commercial purposes
traveler's letter of credit, traveller's letter of credit - a letter of credit given to a traveler
document - a written account of ownership or obligation
Translations
remburssi

letter of credit

nlettera di credito
documentary letter of credit → lettera di credito documentata
References in periodicals archive ?
The experienced team offers a broad array of solutions including commercial term loans, construction loans, revolving lines of credit, letter of credit, and bridge loans.
Topics covered included introduction to various instruments of trade finance, including import letter of credit, letter of guarantee loans against trust receipts, and other advances against local bills discounts, government supply bill discounting and export credit to name a few.
Products and services include asset-based lines of credit, letter of credit facilities, acquisition financing, growth capital, bank loan refinancings, term debt and import/export trade services.