Letter of Credit

Definition

  • A written letter that gives authorization to a person or company to draw on a bank or which states that the bank will honour the credit up to the stated amount.

Synonyms
irrevocable letter of credit, revocable letter of credit

Acronyms
L/C

Related Terms and Acronyms

  • Cheque (CK) Acronym,
    • A written order for payment of a certain amount of money.
    Bank account transaction code.
  • Credit Definition,
    • Money that a lender gives to a borrower on condition of repayment over a certain period.
  • Credit Card (CC) Acronym, Very Important,
    • A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
    A payment card that gives customers access to a revolving line of credit.
  • Debit Definition,
    • Another name for withdrawal of funds from your account.
  • Documentary Credit Definition,
    • Written undertaking by a bank on behalf of an importer authorizing an exporter to draw drafts on the bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. In the United States these instruments are called commercial letters of credit.
  • Irrevocable Definition,
    • Unalterable.
  • Irrevocable Beneficiary Definition,
    • A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
  • Loan Definition,
    • Letting another party use something of value temporarily.
  • Revolving Letter of Credit (RLC)Acronym,
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