Import letter of credit

Import letter of credit,

Definition of Import letter of credit:

  1. A letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.

  2. Designation given by the importer (and his or her bank) to the commercial letter of credit (L/C) established in favor of an exporter. The same L/C is called export letter of credit by the exporter (and all other banks).

How to use Import letter of credit in a sentence?

  1. By way of illustration, take a case in which the customer requests the bank, or other institution, to issue a letter of credit or guarantee to back his purchase of goods.

Meaning of Import letter of credit & Import letter of credit Definition