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Meaning of "letter of credit" in the English dictionary

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PRONUNCIATION OF LETTER OF CREDIT

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WHAT DOES LETTER OF CREDIT MEAN IN ENGLISH?

Letter of credit

A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank. These are documents that prove that the seller has performed the duties under an underlying contract and the goods have been supplied as agreed. In return for these documents, the beneficiary receives payment from the financial institution that issued the letter of credit. The letter of credit serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit's issuer. The letter of credit can also be used to ensure that all the agreed upon standards and quality of goods are met by the supplier, provided that these requirements are reflected in the documents described in the letter of credit. Letters of credit are used primarily in international trade for transactions between a supplier in one country and a customer in another.

WORDS THAT BEGIN LIKE LETTER OF CREDIT

letter
letter bomb
letter box
letter card
letter of acknowledgement
letter of advice
letter of attorney
letter of credence
letter of intent
letter of introduction
letter of marque
letter of marque and reprisal
letter of request
letter opener
letter paper
letter quality
letter rogatory
letter-high
letter-perfect
letter-quality printing

WORDS THAT END LIKE LETTER OF CREDIT

accredit
Bank Giro Credit
carbon credit
confirmed credit
confirmed letter of credit
consumer credit
credit
discredit
documentary letter of credit
edit
eurocredit
export credit
family credit
line of credit
micro-credit
noncredit
on credit
overedit
revolving credit
Social Credit
tax credit

Synonyms and antonyms of letter of credit in the English dictionary of synonyms

SYNONYMS

Translation of «letter of credit» into 25 languages

TRANSLATOR
online translator

TRANSLATION OF LETTER OF CREDIT

Find out the translation of letter of credit to 25 languages with our English multilingual translator.
The translations of letter of credit from English to other languages presented in this section have been obtained through automatic statistical translation; where the essential translation unit is the word «letter of credit» in English.

Translator English - Chinese

信用证
1,325 millions of speakers

Translator English - Spanish

carta de crédito
570 millions of speakers

English

letter of credit
510 millions of speakers

Translator English - Hindi

ऋण पत्र
380 millions of speakers
ar

Translator English - Arabic

خطاب الاعتماد
280 millions of speakers

Translator English - Russian

аккредитив
278 millions of speakers

Translator English - Portuguese

carta de crédito
270 millions of speakers

Translator English - Bengali

ক্রেডিট চিঠি
260 millions of speakers

Translator English - French

lettre de crédit
220 millions of speakers

Translator English - Malay

Surat kredit
190 millions of speakers

Translator English - German

Akkreditiv
180 millions of speakers

Translator English - Japanese

信用状
130 millions of speakers

Translator English - Korean

신용장
85 millions of speakers

Translator English - Javanese

Huruf kredit
85 millions of speakers
vi

Translator English - Vietnamese

thư tín dụng
80 millions of speakers

Translator English - Tamil

கடன் கடிதம்
75 millions of speakers

Translator English - Marathi

आभाराचे पत्र
75 millions of speakers

Translator English - Turkish

akreditif
70 millions of speakers

Translator English - Italian

lettera di credito
65 millions of speakers

Translator English - Polish

akredytywa
50 millions of speakers

Translator English - Ukrainian

акредитив
40 millions of speakers

Translator English - Romanian

scrisoare de credit
30 millions of speakers
el

Translator English - Greek

επιστολή της πίστωσης
15 millions of speakers
af

Translator English - Afrikaans

letter van krediet
14 millions of speakers
sv

Translator English - Swedish

remburs
10 millions of speakers
no

Translator English - Norwegian

remburs
5 millions of speakers

Trends of use of letter of credit

TRENDS

TENDENCIES OF USE OF THE TERM «LETTER OF CREDIT»

The term «letter of credit» is regularly used and occupies the 69.519 position in our list of most widely used terms in the English dictionary.
0
100%
FREQUENCY
Regularly used
68
/100
The map shown above gives the frequency of use of the term «letter of credit» in the different countries.
Principal search tendencies and common uses of letter of credit
List of principal searches undertaken by users to access our English online dictionary and most widely used expressions with the word «letter of credit».

FREQUENCY OF USE OF THE TERM «LETTER OF CREDIT» OVER TIME

The graph expresses the annual evolution of the frequency of use of the word «letter of credit» during the past 500 years. Its implementation is based on analysing how often the term «letter of credit» appears in digitalised printed sources in English between the year 1500 and the present day.

Examples of use in the English literature, quotes and news about letter of credit

EXAMPLES

10 ENGLISH BOOKS RELATING TO «LETTER OF CREDIT»

Discover the use of letter of credit in the following bibliographical selection. Books relating to letter of credit and brief extracts from same to provide context of its use in English literature.
1
A Letter of Credit
The floor was clean enough to sit upon; clean enough almost to eat off; it was the floor of the kitchen of a country farmhouse. "This is the 'Talisman, '" the girl answered her mother's question.
Susan Warner, 2013
2
The Law of Letters of Credit and Bank Guarantees
CHAPTER 8 Transmission of the Benefit of a Credit INTRODUCTION The letter of credit arrangement can be used to finance the beneficiary before final entitlement to the letter of credit proceeds. Alternatively, the beneficiary can transmit the ...
Agasha Mugasha, 2003
3
Bank Guarantees in International Trade: The Law and Practice ...
Moreover, because of its origins, the technique of the standby letter of credit is more closely aligned to the commercial letter of credit than is the guarantee. Accordingly, the textual format tends to show some differences with that of guarantees, ...
Roeland I. V. F. Bertrams, 2004
4
Encyclopedic Dictionary of International Finance and Banking
In contrast, the straight letter of credit does not mention the word negotiated. • Letter of credit (Revolving) — A credit which includes a provision for reinstating its face value after being drawn within a stated period of time. This kind of credit ...
Jae K. Shim, Michael Constas, 2001
5
The Fraud Rule in the Law of Letters of Credit: A ...
In the process be surveys the entire field of the fraud rule in the law of letters of credit in its substantive aspects, thus going deeper than mere banking law analyses and revealing, for the benefit of jurists everywhere, the fundamental ...
Xiang Gao (L.L.M.), Xiang Gao, 2002
6
Law of Multi-Bank Financing
arrangement will agree that the letter of credit will be issued by one of them, but that they will own shares in the letter of credit in proportion to their respective commitments to the borrower. The bank that issues the letter of credit is designated ...
Agasha Mugasha, 1998
7
Japan Business: The Portable Encyclopedia for Doing Business ...
Seller forwards all documents (as stipulated in the letter of credit) to advising bank. Once documents are reviewed and accepted, advising bank pays seller for the goods. ® Advising bank forwards documents to issuing bank. Once documents ...
Christine Genzberger, 1994
8
International Credit and Collections: A Guide to Extending ...
With this type of letter of credit, sellers present documents to the bank as soon as they are received but do not receive payment until some agreed-on date in the future. Besides the security feature, there is the advantage of having such a letter  ...
Mary S. Schaeffer, 2001
9
The Civil Code of the Russian Federation: Parts 1 and 2
On request of the emitting bank, the executing bank participating in the conduct of a letter of credit operation, may guaranty an irrevocable letter of credit ( guarantied letter of credit). Such a guaranty signifies acceptance by the executing bank of ...
Russia (Federation), Peter B. Maggs, Aleksei Nikolaevich Zhiltsov, 1997
10
International Financial Management
The letter of credit is thus the contract between the issuing bank and the beneficiary of the letter of credit (exporter). As the exporter further proceeds through its local bank, it first requests the bank to confirm the letter of credit issued in its favour.
Thummuluri Siddaiah, 2010

10 NEWS ITEMS WHICH INCLUDE THE TERM «LETTER OF CREDIT»

Find out what the national and international press are talking about and how the term letter of credit is used in the context of the following news items.
1
Moody's assigns (P)Baa3 to BL Capital Holdings's proposed …
The principal methodology used in this rating was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, ... «Moodys.com, Jul 15»
2
CRISIL ratings for Indian debt instruments-Jul 20 | Reuters
... Essar Steel Suppliers CC * CRISIL BB 70 Assigned * Includes Letter of credit or buyers credit or letter of comfort of Rs.70 million as a sublimit. «Reuters, Jul 15»
3
Moody's affirms the Aaa long-term LOC supported JDA-ratings of …
New York, July 17, 2015 -- Moody's Investors Service has affirmed the Aaa long-term joint support letter of credit-backed ratings of the ... «Moodys.com, Jul 15»
4
Comerica Earnings Lag on High Provisions, Revenues Up Y/Y …
... card fees and fiduciary income will be largely offset by lower warrant income and regulatory impact on letter of credit and derivative income. «Nasdaq, Jul 15»
5
CARE ratings for Indian debt instruments-Jul 17
... FBL-Fund Based Limits; FRB/FRN -Floating Rate Bond/Note; ICD -Inter Corporate Deposit; ITD-Immediate Term Debt; LOC-Letter of Credit; ... «Reuters, Jul 15»
6
EU-US: export controls and sanctions update - Lexology
... the IRISL shipment to a Spanish Bank in order to receive payment under a Letter of Credit that a US bank had previously declined to advise. «Lexology, Jul 15»
7
AmeraMex International Receives $500000 Letter of Credit
Yesterday we received notification that we were awarded a $2.5 million rental bid and today we received a $500,000 letter of credit for ... «SYS-CON Media, Jul 15»
8
Moody's assigns Prime-1 to T.C.L. Industries' USD commercial paper
The maturity date of the CP notes cannot extend beyond the credit expiration date of the letter of credit and reimbursement agreement. «Moodys.com, Jul 15»
9
Jury Sees "Fake Income" Email in Trial of Dewey Execs
Sanders suggested that the he secure a letter of credit from the firm, Canellas testified. The knowledge that he would be guaranteed a payment ... «The American Lawyer, Jul 15»
10
Fitch Rates RBC Municipal Products, LLC Trust, Series E-58
The rating is exclusively tied to the short and long-term rating that Fitch maintains on the bank providing the letter of credit and liquidity facility ... «Yahoo Finance UK, Jul 15»

REFERENCE
« EDUCALINGO. Letter of credit [online]. Available <https://educalingo.com/en/dic-en/letter-of-credit>. Apr 2024 ».
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