Letters of credit are often issued in aircraft leasing transactions as an alternative to the provision of a cash security deposit and, less frequently, the obligation to pay maintenance reserves in ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Erika Rasure is globally-recognized as a ...

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 ...

Julie Young is an experienced financial writer and editor. She specializes in financial analysis in capital planning and investment management. Thomas J. Brock is a CFA and CPA with more than 20 years ...

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 ...

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 ...

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 ...