Back-to-Back Letter of Credit(redirected from Back to Back L/C)
Back-to-Back Letter of Credit
Two letters of credit issued by two banks, one guaranteeing payment by a seller and the other guaranteeing performance by a buyer. Back-to-back letters of credit are intended to minimize the risk of a transaction. See also: Back-to-Back Credit.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved