Definitions for "letter of credit"
L/C. A binding document that a buyer can request from his bank in order to guarantee...
Funds reserved for payment.
This is a guarantee of payment by a financial institution to a third party. Certain conditions have to be met first and expert advice is required when using these instruments.
A financial institution agrees to pay an exporter once all terms and conditions of the transaction are met. No terms or conditions can be modified without consent of all parties.
a financial instrument that serves two purposes
a financial tool that streamlines the process of doing business both nationally and internationally
a reliable way to settle international trade contracts
a tool that helps facilitate trade
a generic term used for international sales transactions
a payment term generally used for international sales transactions
a standard secured financing tool used in this industry
an agreement separate from a purchase/sale contract or any other contract providing for this form of settlement
Keywords:  authority, funds, borrow
An authority to borrow funds.