letter of credit
noun phraseDefinition of letter of credit
1
: a letter addressed by a banker to a correspondent certifying that a person named therein is entitled to draw on the writer's credit up to a certain sum
2
: a letter addressed by a banker to a person to whom credit is given authorizing drafts on the issuing bank or on a bank in the person's country up to a certain sum and guaranteeing to accept the drafts if duly made
Keep scrolling for more
Keep scrolling for more
Test Your Vocabulary
February 2021 Words of the Day Quiz
-
- Which is a synonym of perdure?

Test your vocabulary with our 10-question quiz!
TAKE THE QUIZ
Spell words. Make bears.
TAKE THE QUIZLove words? Need even more definitions?
Merriam-Webster unabridged
Words at Play
Ask the Editors
Share letter of credit
Time Traveler for letter of credit
The first known use of letter of credit was in 1616
See more words from the same year