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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
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    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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