letter of credit
Payment assurance document
A letter of credit is a document from a bank guaranteeing that a seller will receive payment, provided certain conditions are met.
Common in international trade, it shifts the risk from buyer to seller: the bank promises to pay even if the buyer defaults.
The exporter required a letter of credit before shipping the goods.
Cargo shipment receipt
- commercial invoiceSeller's itemized export document
- packing listItemized travel preparation sheet
- insurance certificateDocument verifying coverage exists
- draftPreliminary version of text
Designated asset receiver
- applicantOne who formally requests
- deferred paymentBuying before paying
- acceptanceConsent to receive
- negotiationDiscussion seeking mutual accord
presentation · amendment · discrepancy · honor · draft · expiry date · revocable · irrevocable
Institution-backed payment promise
- commitmentFirm pledge to act
- obligationRequired task or commitment
- creditworthinessAbility to repay debts
- trustConfidence in another
intermediary · backing · security · political risk · non-payment · recourse · confirmed · unconfirmed
Obtain from overseas
- exportForeign-bound sale
- international tradeExchange across national boundaries
- commoditiesTradeable raw materials
- shippingTransporting goods to destinations
customs · tariff · freight · logistics · buyer · seller · supplier · cross-border
bill of lading
Cargo shipment receipt
- commercial invoiceSeller's itemized export document
- packing listItemized travel preparation sheet
- insurance certificateDocument verifying coverage exists
beneficiary
Designated asset receiver
- applicantOne who formally requests
- deferred paymentBuying before paying
- acceptanceConsent to receive
negotiation · presentation · amendment · discrepancy · honor · draft · expiry date · revocable · irrevocable · transferable
bank guarantee
Institution-backed payment promise
- commitmentFirm pledge to act
- obligationRequired task or commitment
- creditworthinessAbility to repay debts
trust · intermediary · backing · security · political risk · non-payment · recourse · confirmed · unconfirmed
import
Obtain from overseas
- exportForeign-bound sale
- international tradeExchange across national boundaries
- commoditiesTradeable raw materials
shipping · customs · tariff · freight · logistics · buyer · seller · supplier · cross-border · consignment
deposit
Place for safekeeping
- creditcreditworthiness, creditworthy, FICO, FICO score, microcredit
- international tradeglobal trade, customs, tariffs, freight, exports
- export termsexport markets, export duties, bill of lading, commercial invoice, customs broker
- financial agreementsloan agreement, loan contract, promissory note, loan, personal loan
- financial contractsfutures contract, forward contract, insurance policy, derivative, annuity
- Grand Tourgrand tour, aristocrats, aristocrat, nobleman, tutors
letter of creditprepayment
Payment made beforehand
advance payment · cash on delivery · open account · consignment · COD
letter of creditopen account
Ongoing credit arrangement
handshake deal · verbal agreement · gentleman's agreement · unsecured credit · consignment
letter, credit, letters, discredit, accredit, creditor, accredited, discredited, accreditation