0 a letter from a bank allowing the person who has it to take a particular amount of money from a bank in another country
1 a financial document in which a bank formally promises to pay a particular amount of money into the bank of a person selling goods if the goods are delivered by an agreed date and in an acceptable condition. Buyers often use letters of credit to buy goods from other countries:
2 in a situation in which bonds, etc. are sold, a written promise by a bank to pay the lender if the borrower is unable to do so:
Royce's clients eventually refused to extend the letter of credit, leaving it with no option but to cancel the contract, incur the associated financial penalties and close its operation.
It was in relation to being right first time particularly with letters of credit, and the need for training.
Cover is available for short term business (up to 180 days credit) subject to the security of confirmed irrevocable letters of credit.
For instance, would they be arrangements at a stated premium, or with or without a letter of credit, or with a confirmed letter of credit?
The firm also wrote to its customer and requested an extension of the letter of credit.
We want a bank letter of credit up front before we will deliver the machines.
Few overseas orders nowadays are on a letter of credit basis, where the date of delivery is tightly specified.
As recently as 20 years ago, the normal method of obtaining payment in many countries was through the letter of credit.
