lc (C1)

noun

Pronunciation: l-s-i

Definition

A financial document issued by a bank that guarantees payment to a seller on behalf of a buyer, provided certain conditions are met.

Examples

• The exporter insisted on a confirmed letter of credit before agreeing to the deal.

• Opening an LC is a standard procedure in international trade to reduce risk.

• The buyer's bank issued the LC, assuring the seller of payment upon shipment.

How to Use lc

letter of credit (collocation)

A formal document from a bank guaranteeing payment. — "The contract stipulated payment via a letter of credit."

Synonyms of lc

Words with a similar meaning to lc:

• credit facility
• payment guarantee
• bank guarantee

Antonyms of lc

Words with the opposite meaning to lc:

• cash payment
• open account

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