Definify.com

Definition 2024


letter_of_credit

letter of credit

English

Noun

letter of credit (plural letters of credit)

  1. (finance, banking) A document, used primarily in trade finance and issued generally by a financial institution, in which the institution promises to pay debts up to a certain limit to be acquired by the beneficiary against delivery of documents specified in the letter.

Synonyms

  • (trade finance document): documentary credit, LC, L/C

Translations