Standby letter of credit : Issued by a bank to guarantee the performance of a customer or strengthen their credit worthiness. The parties involved in the trade don't expect that the letter of credit will ever be drawn upon
Ulster Bank (Business/Products/International-Banking), Guide to International Business, Glossary of Terms, Belfast, Northern Ireland 2012. http://www.ulsterbank.com/ni/business/products/int ernational-banking/guide-to-international-business /glossary-of-terms.ashx, (Mrtm/ Int Biz and Banking - Brit) {540}