letter of credit (L/C)

What is letter of credit (L/C)?

letter of credit (L/C) definition and meaning on Finance terms:
An irrevocable commitment by a bank (the issuing bank) or other issuer made at the request of a customer (the applicant third party) to pay a specified sum of money to a third party upon request, subject to terms and conditions drawn up in accordance with uniform customs and practices. <


reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html