Letters of Credit Definition

Below please find a definition of “Letters of Credit”

Financial Analysis Training & Glossary TermsLetters of Credit: When a financial institution issues a letter to another financial institution on behalf of a person, it is meant to serve as a guarantee of payments and that is known as a letter of credit. The person or seller needs to abide by specific conditions in order to receive such a letter of credit.

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Tags:  Letter of credit, Defining letter of credit, Letter of credit definition, Credit authorization, Specific authorization, Guarantee of payment, Payment guaranteed

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