Standby Letter Of Credit

Business, Legal & Accounting Glossary

Definition: Standby Letter Of Credit


Standby Letter Of Credit


Full Definition of Standby Letter Of Credit


A type of statement that is presented to a seller saying that if the buyer of an item fails to pay, that buyer’s bank will make the payment on the buyer’s behalf. These letters tend to help eliminate risk to the seller in that they will be paid for their item in one manner or another, either from the buyer or from the bank that has issued the letter of credit.


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Modern Language Association (MLA):
Standby Letter Of Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/standby-letter-of-credit/.
Chicago Manual of Style (CMS):
Standby Letter Of Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/standby-letter-of-credit/ (accessed: April 23, 2024).
American Psychological Association (APA):
Standby Letter Of Credit. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/standby-letter-of-credit/

Definition Sources


Definitions for Standby 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: 16th November, 2021 | 0 Views.