deferred reimbursement letter of credit (L/C)
Definition
Arrangement under which the bank issuing a L/C also finances it. The bank pays the beneficiary upon presentation of the required documents but delays charging that amount to the applicant until a future date. Its objective usually is to allow the applicant a period long enough to resell the financed goods.
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deferred reimbursement letter of credit (L/C) is in the Accounting & Auditing, Banking, Commerce & Finance and International Trade & Relations subjects.
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