Application For Letter Of Credit
Definition
A promise to pay. This is standard in international trade because banks act as an uninterested party between buyer and seller. Importers/exporters may utilize letters of credit to protect themselves legally. A bank issues a letter of credit if they know a buyer will pay. In certain situations, a buyer has to have the funds to cover the letter of credit, or may use a line of credit with the bank.
Nearby Terms
- Similar companies