Asked by Ciara Lawrence on May 02, 2024
Verified
Provide a definition for the term letter of credit.
Letter of Credit
A financial document issued by a bank guaranteeing a buyer's payment to a seller in a transaction, effective in international trade.
- Acquire an understanding of the different options for short-term financing for companies and their distinct features.
Verified Answer
JH
Joesph HickeyMay 02, 2024
Final Answer :
A written statement by a bank that money will be paid, provided conditions specified in the letter are met.
Learning Objectives
- Acquire an understanding of the different options for short-term financing for companies and their distinct features.