From Longman Dictionary of Contemporary Englishletter of creditˌletter of ˈcredit noun [countable] BFLan official letter from a bank allowing a particular person to take money from another bank
Examples from the Corpus
letter of credit• The financing is backed by a letter of credit from Societe General, Bancomext said in the statement.• From a letter of credit standpoint, however, the receipt message can also play a more definitive role.• Was Mocatta J. right to hold that the automatic obligation to increase the retum letter of credit was consideration?From Longman Business Dictionaryletter of creditˌletter of ˈcredit written abbreviation l/c noun (plural letters of credit) [countable]FINANCE1in foreign trade, a written promise by an importer’s bank to pay the exporter’s bank on a particular date or at a particular time after the goods are sent by the exporterCoffee buyers in Central America are required to have proof of financing, such as a letter of credit.2when bonds are sold, a written promise by a bank that it will repay the bonds to lenders if the borrower is unable to repay themThe notes are backed by a letter of credit from Morgan Guaranty Trust Co. 