letter of credit

(redirected from Commercial letters of credit)
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Related to Commercial letters of credit: Revocable letter of credit, Irrevocable Letters 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 ?
According to the International Chamber of Commerce (ICC), commercial letters of credit still account for 38% of the trade finance product mix.
A decrease in the use of traditional trade finance was also evident in this year's Global Survey report, with nearly 50 per cent of respondents reporting a decrease in commercial Letters of Credit, while nearly 35 per cent reported an increase in supply chain finance deals.
He attributed the long delivery period to the monetary policy and the opening of commercial letters of credit, as well as delays in the supply of cars from EIM, which is due to the company's manufacturing cycle.
75%; commercial letters of credit will be issued; Reset the restricted payments basket to USD175m plus 50% of cumulative consolidated net income from continuing operations for all fiscal quarters ending on and after 27 September 2013; and some other restricted payments baskets were reduced to USD7.
In addition, it offers revolving or seasonal lines of credit, term loans for equipment, commercial real estate mortgages for expansion or acquisition, equipment leasing, commercial letters of credit, and guaranteed loans, as well as agricultural loans and equipment leasing services.

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