What is the Difference Between a Letter of Credit and a Line of Credit?
There is a fundamental difference between a Letter of Credit and a Line of Credit. A Letter of Credit is a financial instrument issued by a bank. A Line of Credit is a loan...
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What is a Direct Letter of Credit and how does it differ from a Documentary Letter of Credit and a Standby Letter of Credit?
A Direct Letter of Credit or Direct-Pay Letter of Credit is fundamentally different from a Documentary Letter of Credit. However, in some quarters it is regarded as a special...
How can a Business Apply for a Line of Credit?
What is a line of credit? It is in effect a loan offered by a bank or similar institution. It is not a straight loan credited to your account. It is an agreed amount set for...
How Can a Line of Credit be utilised?
Once a line of credit has been approved funds can be drawn down immediately. As soon as a part or full drawdown is made a pre agreed interest rate will be charged. In some...
The Rules and Regulations Governing Bank Guarantees
History
Before concerning ourselves with the rules behind Bank Guarantees we need to discuss a bit of history. The International Chamber of Commerce (ICC) was set...
How Do Lines of Credit Assist in Loan Applications to Banks?
Business loan applications are being rejected by banks on a global scale, and sadly they are pulling back from loan facilities in general. The banks can make bigger profits...
How do Companies Raise Lines of Credit?
In current times, finding credit – through your bank or not, is becoming increasingly harder. The global pandemic, as well as change of legislation as a result of Brexit is...
This Blog Could Save Your Company
This could be the most important blog you have ever read. Is you company in financial trouble? Are you suffering the financial effects of the Pandemic? Are your banks refusing...
What is a Standby Letter of Credit?
Many companies ask us what is a Standby Letter of Credit and how it differs from a Bank Guarantee. We will answer the second half of the question first. A standby letter of...