Template:M summ GMSLA 8.5: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) (Created page with "===... and a {{gmslaprov|Letter of Credit}} is what, exactly? {{lc capsule}}") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
===... and a {{gmslaprov|Letter of Credit}} is what, exactly? | ===... and a {{gmslaprov|Letter of Credit}} is what, exactly? === | ||
{{lc capsule}} | {{lc capsule}} | ||
Latest revision as of 15:04, 7 July 2020
... and a Letter of Credit is what, exactly?
An old fashioned form of credit support. A bank writes an unconditional letter promising to pay a (usually large) sum on money on demand and without argument to a third party on behalf of a client. This gets small companies a bit of breathing space with trade creditors. Banks charge through the nose for them: they are a form of committed funding.
Lots of formal rules and legal form-obeisance.