commercial letter of credit is an obligation issued by a bank on behalf of a bank customer to a third party. A commercial or trade letter of credit is a bank promise to pay the third party for the purchase of goods by the bank's customer. If the bank's obligation to pay is not immediate, the transaction can later give rise to a banker's acceptance. Also called trade letter of credit. See: banker's acceptance and letter of credit.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). commercial letter of credit. Retrieved October 2, 2026, from http://smartdefine.org/commercial_letter_of_credit/definitions/1150223 |
| Chicago | Barry Goldsmith. 2010. "commercial letter of credit" http://smartdefine.org/commercial_letter_of_credit/definitions/1150223 (accessed October 2, 2026). |
| Harvard | Barry Goldsmith 2010, commercial letter of credit, Smart Define, viewed 2 October, 2026, <http://smartdefine.org/commercial_letter_of_credit/definitions/1150223>. |
| MLA | Barry Goldsmith. "commercial letter of credit" 21 October 2010. Web. 2 October 2026. <http://smartdefine.org/commercial_letter_of_credit/definitions/1150223> |