Letter of credit: Difference between revisions

Letter of credit (view source)

389 bytes removed , 6 November 2019

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-{{g}}An old fashioned form of {{t|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.
+{{g}}{{lc capsule}}
-Lots of formal rules and legal form-obeisance.
 Often talked about, seldom seen, as [[credit support]] for a {{gmsla}}