Back To Back Letter Of Credit

Business, Legal & Accounting Glossary

Definition: Back To Back Letter Of Credit


Back To Back Letter Of Credit


Full Definition of Back To Back Letter Of Credit


A way for a contractor to guarantee payment to a subcontractor. When a contractor has received a letter of credit from a buyer, the contractor can then request a letter of credit to be issued to the subcontractor with the first letter of credit as collateral, ensuring the subcontractor will be paid.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/back-to-back-letter-of-credit/
Modern Language Association (MLA):
Back To Back Letter Of Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 07, 2021 https://payrollheaven.com/define/back-to-back-letter-of-credit/.
Chicago Manual of Style (CMS):
Back To Back Letter Of Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/back-to-back-letter-of-credit/ (accessed: December 07, 2021).
American Psychological Association (APA):
Back To Back Letter Of Credit. PayrollHeaven.com. Retrieved December 07, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/back-to-back-letter-of-credit/

Definition Sources


Definitions for Back To Back Letter Of Credit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.