Definitions
There is 1 meaning of the phrase
Letter Of Credit.
Letter Of Credit - as a noun
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
Hypernyms (Closely Related)
credit9document13Hyponyms (Broadly Related)
Example Sentences
"The exporter required a letter of credit from the buyer's bank as a guarantee of payment."
"The company applied for a letter of credit to secure funds for importing raw materials."
"The letter of credit can be used as collateral to obtain a loan from a financial institution."
"The supplier insisted on a confirmed letter of credit to ensure prompt payment."
"The buyer's bank issued a sight letter of credit, allowing the seller to receive immediate payment upon delivery."
