What is another word for letter of credit?
Pronunciation: [lˈɛtəɹ ɒv kɹˈɛdɪt] (IPA) 
A Letter of Credit (LC) is a financial document that is used to guarantee payment between a buyer and a seller. Another term for this document is a Documentary Credit and this is a widely used term within international trade. Another possible synonym is a payment guarantee. It dictates the terms and conditions of the transaction and makes sure that the payment is made in a timely and secure manner. Another synonym for LC is a bankers' acceptance. Banks play a crucial role in processing these documents and issuing the payment guarantee, making this term very apt. In essence, these synonyms all refer to the same document and concept of ensuring secure payment between parties in international trade.
