Copyright © Philip M. Parker, INSEAD. Terms of Use.
Definition: Letter Of Credit |
Letter Of CreditNoun1. A document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit. Source: WordNet 1.7.1 Copyright © 2001 by Princeton University. All rights reserved. |
| Domain | Definition |
Finance | A document issued by a bank or other financial institution to a prospective borrower, for an agreed amount, and for a definite or indefinite period; it allows the borrower to draw bills of exchange on the institution up to that amount; letters of credit are also used in foreign trade. Source: European Union. (references) |
Economics | A commitment, usually by a bank on behalf of a client, to pay a beneficiary a stated amount of money under specified conditions. (references) |
Literature | Letter of Credit A letter written by a merchant or banker to another, requesting him to credit the bearer with certain sums of money. Circular Notes are letters of credit carried by gentlemen when they travel. Source: Brewer's Dictionary. |
Shipping | A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Some of the specific descriptions are: - Back-to-Back: A new letter of credit issued to another beneficiary on the strength of a primary credit. The second L/C uses the first L/C as collateral for the bank. Used in a three-party transaction. - Clean: A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment. - Confirmed: An L/C guaranteed by both the issuing and advising banks of payment so long as seller's documents are in order, and the L/C terms are met. Only applied to irrevocable L/C's. The confirming bank assumes the credit risk of the issuing bank. - Deferred Payment: A letter of credit issued for the purchase and financing of merchandise, similar to acceptance- type letter of credit, except that it requires presentation of sight drafts payable on an installment basis. - Irrevocable: An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned. - Non cumulative: A revolving letter of credit that prohibits the amount not used during the specific period from being available afterwards. - Restricted: A condition within the letter of credit which restricts its negotiation to a named bank. - Revocable: An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank. Rarely used since there is no protection for the seller. - Revolving: An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period. - Straight: A letter of credit that contains a limited engagement clause which states that the issuing bank promises to pay the beneficiary upon presentation of the required documents at its counters or the counters of the named bank. part to another beneficiary any amount which, in aggregate, of such transfers does not exceed the amount of the credit. Used by middlemen. - Unconfirmed: A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank. Letter of Indemnity :: In order to obtain the clean bill of lading, the shipper signs a letter of indemnity to the carrier on the basis of which may be obtained the clean bill of lading, although the dock or mate's receipt showed that the shipment was damaged or in bad condition. (references) |
Source: compiled by the editor from various references; see credits. | |
| Context | Synonyms within Context (source: adapted from Roget's Thesaurus). |
Credit | Letter of credit, circular note; duplicate; mortgage, lien, debenture, paper credit, floating capital; draft, lettre de creance, securities. |
Money | Letter of credit. |
| Source: adapted from Roget's Thesaurus. | |
Crosswords: Letter Of Credit |
| English words defined with "letter of credit": banker's check ♦ commercial letter of credit ♦ traveler's check, traveler's letter of credit, traveller's check, traveller's letter of credit. (references) |
| Specialty definitions using "letter of credit": Acceptance Letter Of Credit, Account Party, Advised Credit, Advising Bank ♦ Confirmed Letter of Credit, Confirming Bank ♦ Deferred Payment Letter of Credit, Discrepancy Letter of Credit, Draft, Discounted ♦ Inspection Certificate, Irrevocable Letter of Credit, Issuing Bank ♦ LETTER-OF-CREDIT CLERK, LETTER-OF-CREDIT DOCUMENT EXAMINER ♦ Merchant's Credit ♦ On Board ♦ Restricted Letter of Credit, Revolving Letter of Credit ♦ SON, Standby Letter of Credit ♦ Unconfirmed Letter Of Credit, Unrestricted Letter Of Credit. (references) |
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Source: compiled by the editor from various references; see credits. | |||
| Author | Quotation |
Author Unknown | If a good face is a letter of recommendation, a good heart is a letter of credit. |
Source: compiled by the editor from various references. | |
| Subject | Topic | Quote |
Business | The method of payment is usually by letter of credit or sight draft. (references) | |
Most payments are made by letter of credit (L/C) in a foreign currency. (references) | ||
Letter of credit can be routed through the local banks having overseas network. (references) | ||
Economic History | Cyprus | The usual method of transaction is by letter of credit, with 90-days credit. (references) |
Egypt | Without the certainty of a letter of credit, defaults are a strong possibility. (references) | |
Syria | Before a letter of credit (L/C) is opened, the supplier must submit a 10% performance bond. (references) | |
Political Economy | BANGLADESH | Ready-made garment producers are assisted by bonded warehousing and back-to-back letter of credit facilities for imported cloth and accessories. (references) |
Trade | Czech Rep | Most would prefer not to use a letter of credit due to its high cost. (references) |
Australia | A confirmed letter of credit guarantees payment by a foreign bank as well. (references) | |
Travel | Chad | Chadian banks provide various services: short and long term credit, technical assistance to small and medium size enterprises, foreign operations, exchange letter of credit and checking and savings accounts, etc. (references) |
Guinea | The key to sales in the mining, donor project, and general markets are French language ability, patience with the long selling time necessary, and very clear contractual terms, including an irrevocable letter of credit and/or advance payment on a U.S. bank. (references) | |
Source: compiled by the editor from ICON Group International, Inc.; see credits. | ||
Expressions using "letter of credit": circular letter of credit ♦ commercial letter of credit ♦ traveler's letter of credit ♦ traveller's letter of credit. Additional references. | |
| Source: compiled by the editor from various references; see credits. |
| The following statistics estimate the number of searches per day across the major English-language search engines as identified by various trade publications. Hyperlinks lead to commercial use of the expression at Amazon.com. |
| Expression | Frequency per Day |
letter of credit | 467 |
standby letter of credit | 39 |
irrevocable letter of credit | 23 |
bank letter of credit | 7 |
letter of credit form | 7 |
international letter of credit | 6 |
documentary letter of credit | 6 |
commercial letter of credit | 5 |
export letter of credit | 5 |
letter of credit training | 4 |
import letter of credit | 3 |
letter of credit financing | 2 |
| Source: compiled by the editor from various references; see credits. | |
| Language | Translations for "letter of credit"; alternative meanings/domain in parentheses. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Albanian | letërkredit, kartë krediti (charge card, credit card). (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Bulgarian | акредитив (bill of credit). (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Chinese | 信"證 . (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Czech | akreditiv. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Danish | kreditiv. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dutch | kredietbrief, accreditief. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Esperanto | akreditivo. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Finnish | remburssi (documentary credit), matkakreditiivi, kreditiivi. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
French | lettre de crédit, l/cr. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
German | kreditbrief. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Greek | πιστωτική επιστολή, πίστωση τραπεζική (line of credit). (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hungarian | okmányos meghitelezés, hitellevél, akkreditív. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Icelandic | bankaábyrgð, úttektarbréf. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Italian | lettera di credito. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese Kanji | 信"状 . (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese Katakana | し"ようじょう. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Manx | screeuyn daayl. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pig Latin | etterlay ofay editcray carta de crédito. (various references) scrisoare de credit, acreditiv (credentials). (various references) аккредитив (bill of credit, l/c, lc). (various references) kreditno pismo (credit: letter of credit), akreditiv (credentials, credit: letter of credit). (various references) carta de crédito (bill of credit, credit card). (various references) kreditiv (credentials, letter of credence). (various references) kredi mektubu (circular letter of credit, circular note, credit note), akreditif, akredítíf. (various references) thư tín dụng. (various references) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Scrabble® Enable2K-Verified Anagrams | |
| Words within the letters "c-d-e-e-e-f-i-l-o-r-r-t-t-t" | |
-3 letters: retrofitted. | |
-4 letters: refiltered, tricolette. | |
-5 letters: deflector, electrode, electroed, flittered, frittered, reflected, reflector, retrocede, retrodict, torrefied. | |
| Source: compiled by the editor from various references; see credits. SCRABBLE® is a registered trademark. All intellectual property rights in and to the game are owned in the U.S.A and Canada by Hasbro Inc., and throughout the rest of the world by J.W. Spear & Sons Limited of Maidenhead, Berkshire, England, a subsidiary of Mattel Inc. Mattel and Spear are not affiliated with Hasbro. | |
| 1. Definition 2. Crosswords 3. Usage: Commercial 4. Quotations: Familiar | 5. Quotations: Non-fiction 6. Expressions 7. Expressions: Internet 8. Translations: Modern | 9. Anagrams 10. Bibliography |
Copyright © Philip M. Parker, INSEAD. Terms of Use.
