letter of credit

Other forms: letters of credit

Definitions of letter of credit

1. 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
   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