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

Derived terms

Translations

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