letter of credit (LC)

Definition of "letter of credit (LC)"
  1. 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
How to use "letter of credit (LC)" in a sentence
  1. The importer used a letter of credit (LC) to ensure timely payment to the exporter.
  2. He requested a letter of credit (LC) from his bank to facilitate the international trade deal.
  3. The supplier demanded a letter of credit (LC) to mitigate the credit risk.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z