Letter of credit
From ACT Wiki
(LC). A promise document issued by a bank or another issuer to a third party to make a payment on behalf of a customer in accordance with specified conditions. Letters of credit are frequently used in international trade to make funds available in a foreign location.
See also
- Advising bank
- Clean letter of credit
- Commercial risk
- Condition
- Confirmed letter of credit
- Confirming bank
- Credit
- Documentary credit
- Irrevocable letter of credit
- Issuing bank
- LOC backed
- Standby letter of credit