letter of credit

noun

A document, used primarily in trade finance and issued generally by a financial institution, in which the institution promises to pay debts up to a certain limit to be acquired by the beneficiary against delivery of documents specified in the letter.

Similar
documentary creditLCL/C
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Meanings

nounletter of credit (plural letters of credit)

plural letters of credit

  1. bankingA document, used primarily in trade finance and issued generally by a financial institution, in which the institution promises to pay debts up to a certain limit to be acquired by the beneficiary against delivery of documents specified in the letter.

    Synonyms: documentary credit, LC, L/C

Synonyms & antonyms

nounA document, used primarily in trade finance and issued generally by a financial institution, in which the institution promises to pay debts up to a certain limit to be acquired by the beneficiary against delivery of documents specified in the letter.

Similar
documentary creditLCL/C
Also see
note

Translations

Bulgarian акредити́в
  • акредити́в (akreditív)trade finance document
Chinese Mandarin 信用證 /信用证, 信用狀 /信用状
  • 信用證 /信用证 (xìnyòngzhèng)trade finance document
  • 信用狀 /信用状 (xìnyòngzhuàng)trade finance document
Esperanto akreditivo
  • akreditivotrade finance document
Finnish remburssi
  • remburssitrade finance document
French lettre de crédit, accréditif
  • lettre de crédittrade finance document
  • accréditiftrade finance document
German Akkreditiv
  • Akkreditivtrade finance document
Greek τραπεζική πίστωση
  • τραπεζική πίστωση (trapezikí pístosi)trade finance document
Hungarian hitellevél
  • hitellevéltrade finance document
Korean 신용장
  • 신용장 (sinyongjang)trade finance document
Polish akredytywa
  • akredytywatrade finance document
Portuguese carta de crédito
  • carta de créditotrade finance document
Romanian scrisoare de credit
  • scrisoare de credittrade finance document
Russian аккредити́в
  • аккредити́в (akkreditív)trade finance document
Turkish akreditif
  • akreditiftrade finance document
Cite this entry
APA

letter of credit. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/letter%20of%20credit

MLA

“letter of credit.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/letter%20of%20credit. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “letter of credit,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/letter%20of%20credit.

Source: letter of credit on Wiktionary, CC BY-SA 4.0.