Definition of letter of credit L/C

A document issued by a bank on behalf of a customer guaranteeing a certain payment to another party under specific conditions. A letter of credit can be revocable (i.e. it can be cancelled by the customer or the bank) or irrevocable (it cannot be cancelled). Letters of credit can be negotiable (i.e. tradable on a secondary market).

FT Articles & Analysis

No articles are associated with this term