letter of credit

Definitions of letter of credit
1

n 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

Types:
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
banker's check, traveler's check, traveller's check
a letter of credit issued by a bank or express company that is payable on presentation to any correspondent of the issuer
Type of:
credit
money available for a client to borrow
document
a written account of ownership or obligation

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