Commercial letters of credit


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Related to Commercial letters of credit: Revocable letter of credit, Irrevocable Letters of Credit

Commercial letters of credit

Trade-related agreement that a certain amount of bank funds is available to an entity.

Letter of Credit

A statement issued by a bank to the buyer of a good stating that the seller will receive payment on time and in the correct amount. If the buyer fails to make payment, the bank will do so on his/her behalf. The buyer presents a letter of credit to the seller, which eliminates the risk that the seller will not be paid. Letters of credit have become very common in international commerce, as distance and other factors make it difficult for sellers to establish the creditworthiness of every buyer.
References in periodicals archive ?
5 million in financing from a sale and leaseback arrangement with a real estate investment trust involving 45 of the Company's restaurants and (3) a $30 million three year revolving credit facility of which up to $20 million will be available to support commercial letters of credit with the remainder available to provide working capital and for other corporate needs.
The standstill agreements apply to existing debt of approximately $362 million and $133 million of trade and commercial letters of credit.
Approximately $11 million of the senior credit facility will be used to support commercial letters of credit, and the remainder will be available to provide working capital and for other corporate purposes.
The Easy L/C provides small business importers 24-hour turnaround on commercial letters of credit under $25,000 at a low, flat fee.
The BizCurrency TradeEnabler is designed to facilitate a wide range of import and export trade finance transactions, including commercial letters of credit, standby letters of credit, amendments, bills and documentary collections.
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