Term of Day
Uh oh! You're not
Term of Day
+ Create New Flashcard
in which the
worthiness of an
is substituted by the
for a specific
. Under documentary credit
(also called letter of credit arrangement) a bank (usually in the importer's country) undertakes to pay for a
, provided the
(such as a clean bill of lading, certificate of insurance, certificate of origin) within a specified
. In the US this arrangement is called 'commercial letter of credit.'
You Also Might Like...
Why Good Credit Matters For Both Individuals and ...
In today's society having good credit is an important aspect of being able to afford necessities such as housing, transportation and insurance. Various businesses may offer products and services based on your credit worthiness and some employers may ...
How Credit Scores Help Consumers
For consumers, a credit score helps determine how much you pay for certain products and services. In some cases, it may even have an effect on your chances in obtaining employment. A credit score gives lenders an idea of your credit risk and ...
How to Monitor Your Credit - For Free!
How to Pick a Credit Card for Your Business
One of the easiest and most convenient ways for a small business to raise money is to use a business credit card. You can get one based on your personal credit score, a factor that makes these cards popular with startups. Even existing businesses ...
Copy & paste this HTML in your website to link to this page
Popular 'Banking, Commerce, Credit, & Finance' Terms
letter of credit (L/C)
Mentioned in These Terms
uniform customs and practice for documentary credit (UCP)
availability under documentary credit
assignment under documentary credit
Browse Dictionary by Letter: