Irrevocable letter of credit(redirected from Irrevocable Letters of Credit)
Irrevocable letter of credit
Assurance of funds issued by a bank that cannot be canceled or amended without the beneficiary's approval.
Irrevocable Letter of Credit
A letter of credit that neither the bank granting it nor the letter holder (who is the buyer of some good) may cancel under any circumstances. This provides the seller with extra assurance that he/she will be paid on time and in the correct amount. Irrevocable letters of credit are most common in international commerce.