Sight Letter Of Credit


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.

BREAKING DOWN '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.

  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. Trade Finance

    The financing of international trade. Trade finance includes ...
  4. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a ...
  5. Irrevocable Letter Of Credit - ...

    Correspondence issued by a bank guaranteeing payment for goods ...
  6. Standby Letter of Credit - SLOC

    A guarantee of payment issued by a bank on behalf of a client ...
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