What is another word for letters of credit?
Pronunciation: [lˈɛtəz ɒv kɹˈɛdɪt] (IPA) 
Letters of credit are commonly used in international trade as a means of payment and assurance between buyers and sellers. Synonyms for letters of credit include documentary credit, banker's acceptance, and trade finance. Documentary credit refers to a written instrument issued by a bank on behalf of a buyer, providing payment to a seller upon the presentation of specified documents, while a banker's acceptance is a promise by a bank to pay a certain amount to the seller on a specific date. Trade finance is a broader term that encompasses various financial instruments used by businesses to facilitate trade transactions. Regardless of the synonym used, letters of credit play a crucial role in facilitating international trade.
