Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas ...

Letters of credit are legal instruments providing a financial guarantee. They assure a beneficiary that payments will be made or nonfinancial obligations performed by a seller or provider. Standby ...

A letter of credit guarantees payment to sellers in international trade. Not all letters of credit are transferable; terms vary. Letters of credit differ from lines of credit, mainly not involving ...

Doing business in a fast and turbulent environment is difficult. Regulations change, new technology emerges, and rapid changes in external environments continuously affect small businesses. A major ...

Commercial letters of credit provide reliable means of payment in commercial sale transactions Letter of credit and bank's payment are independent of underlying sale transaction Bank's obligation to ...

Many subscription credit facilities will provide for the issuance of letters of credit in addition to the funding of loans. A letter of credit is an irrevocable undertaking for the payment of money ...