commercial letter of credit
- noun
- Specialized
:
carta de crédito comercial
- The exporter required a commercial letter of credit before shipping the products overseas.
Examples
-
To secure the deal, the buyer arranged a commercial letter of credit through their bank.
-
A commercial letter of credit guarantees that the seller will receive payment once the documents are presented.
-
A commercial letter of credit ensures that suppliers are paid promptly.
-
The bank issued a commercial letter of credit for the transaction.
-
A commercial letter of credit guarantees that the seller will receive payment once the required documents are presented.
-
The exporter required a commercial letter of credit to ensure payment before shipping the products overseas.
-
To secure the deal for the machinery, the buyer arranged a commercial letter of credit through their bank.
Synonyms
1
5.5
A bank document that promises to pay a seller if a buyer meets certain conditions
How Secure
- Formal
169
3.5
- Formal
1
5.5
- Specialized
- Formal
5
3.2
50
3.3
Surface Forms
Morphology
commercial + letter + of + credit
The phrase is compositionally built from 'commercial' (business-related) + 'letter' (a document) + 'credit' (a financial arrangement), so a learner who knows those words can infer it refers to a business document concerning payment/credit. This pattern (a document guaranteeing payment in commercial transactions) is common across languages and follows standard noun-of-noun composition, making the meaning accessible to B1 learners.
Etymology
Commercial letter of credit comes from a simple image: a bank writes a formal letter that gives a credit, a 'promise to pay', for a business (commercial) sale. When the seller shows the correct papers, the bank pays, so the phrase means a bank's written guarantee for payment in a business deal.