LETTER OF CREDIT

Pronunciation (US):

(GB):

IPA (US):

 Dictionary entry overview: What does letter of credit mean? 

• LETTER OF CREDIT (noun)
  The noun LETTER OF CREDIT has 1 sense:

1. a document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit

  Familiarity information: LETTER OF CREDIT used as a noun is very rare.

 Dictionary entry details 

• LETTER OF CREDIT (noun)

Sense 1

Meaning:

A document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit

Classified under:

Nouns denoting possession and transfer of possession

Hypernyms ("letter of credit" is a kind of...):

credit (money available for a client to borrow)

document (a written account of ownership or obligation)

Hyponyms (each of the following is a kind of "letter of credit"):

commercial letter of credit (a letter of credit given to a business concern for commercial purposes)

traveler's letter of credit; traveller's letter of credit (a letter of credit given to a traveler)

 Context examples 

Every scrap of paper was gone, and with it all my notes, my memoranda, relating to railways and travel, my letter of credit, in fact all that might be useful to me were I once outside the castle.

(Dracula, by Bram Stoker)