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Definitions from WordNet

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Commercial Letter of Credit

Definition: A commercial letter of credit is a financial document that guarantees payment to the seller by a buyer's bank, upon successful completion of the required conditions and documentation.

Usage:

1. Sense 1: In international trade, a commercial letter of credit acts as a secure method of payment, ensuring that the seller will receive payment once they fulfill the stated obligations of the contract.
   Example sentence: When exporting goods to foreign markets, it is advisable to request a commercial letter of credit to mitigate payment risks.
2. Sense 2: A commercial letter of credit can also be utilized domestically by businesses when dealing with new or unfamiliar clients, providing a layer of reassurance in terms of payment.
   Example sentence: The company decided to use a commercial letter of credit when engaging with a new customer to safeguard against non-payment.

Related Products:

• Books on Commercial Letter of Credit
• Software for Managing Letter of Credit
• Services for Handling Letter of Credit