A document issued by a bank to guarantee payment of sums due under BILLS OF EXCHANGE and cheques. In most cases, these letters are requested by importers to make them sufficiently creditworthy to be able to order goods from foreign...

A letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable payment undertaking (it can also be revocable, confirmed, unconfirmed, transferable or others e.g. back to back: revolving but is most...