Sight Letter Of Credit

AAA

DEFINITION of 'Sight Letter Of Credit'

A letter of credit that is payable once it is presented along with the necessary documents. An organization offering a sight letter of credit commits itself to paying the agreed amount of funds provided the provisions of the letter of credit are met.

INVESTOPEDIA EXPLAINS 'Sight Letter Of Credit'

For example, a business owner may present a bill of exchange to a lender along with a sight letter of credit, and walk away with the necessary funds right then. A sight letter of credit is thus more "on demand" than some other types of letters of credit.

RELATED TERMS
  1. Transferable Letter Of Credit

    A letter of credit that permits the beneficiary of the letter ...
  2. Red Clause Letter Of Credit

    A specific type of letter of credit in which a buyer extends ...
  3. Irrevocable Letter Of Credit - ...

    Correspondence issued by a bank guaranteeing payment for goods ...
  4. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a ...
  5. Trade Finance

    The financing of international trade. Trade finance includes ...
  6. Standby Letter of Credit - SLOC

    A guarantee of payment issued by a bank on behalf of a client ...
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. Using Economic Capital To Determine ...
    Personal Finance

    Using Economic Capital To Determine ...

  3. What Is International Trade?
    Personal Finance

    What Is International Trade?

  4. How To Establish A Credit History
    Options & Futures

    How To Establish A Credit History

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center