Letter Of Credit
A letter of credit is a document that guarantees payment from a buyer to a seller. The letter of credit is typically issued by a bank on behalf of the buyer. It can be used to make payments for goods and services, or to settle financial obligations. The letter of credit definition can vary depending on the type of transaction. For example, there are letters of credit that are used to make payments for imports and exports. There are also letters of credit that are used to settle financial obligations between two businesses.