back-to-back credit

back-to-back credit
Also known as counter credits. A credit operation involving the use of two separate letters of credit. A letter of credit is issued at the seller's request to his own supplier (sometimes called the secondary credit), against a letter of credit which the seller has himself received from his own buyer (the primary credit).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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