letter of credit (LC)
- A document provided by a bank at the buyer's request, granting the seller permission to draw a set amount of money under agreed upon conditions, and usually requiring the bank to receive certain documents within a specified time frame
- The importer used a letter of credit (LC) to ensure timely payment to the exporter.
- He requested a letter of credit (LC) from his bank to facilitate the international trade deal.
- The supplier demanded a letter of credit (LC) to mitigate the credit risk.