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A letter of credit ( LC ), also known as a documentary credit or bankers commercial credit, or letter of undertaking ( LoU ), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.
Major differences distinguish letters of credit from "demand guarantees"; in the latter instrument the obligation to pay is conditioned within the terms of the bank's promise, therefore if the demand guarantee is payable upon the beneficiary's written first demand he is assured payment notwithstanding any defence related to any other underlying ...
Finance. In financial transactions, a warrant is a written order by one person that instructs or authorises another person to pay a specified recipient a specific amount of money or supply goods at a specific date. [1] A warrant may or may not be negotiable and may be a bearer instrument that authorises payment to the warrant holder on demand ...
A goodwill letter is a formal letter to a creditor or lender, such as a bank or credit card company, to request forgiveness for a late payment or other negative item on your credit report. In the ...
Acceptance credit. An acceptance credit is a type of letter of credit that is paid by a time draft authorizing payment on or after a specific date, if the terms of the letter of credit have been complied with. The bank "accepts" bills of exchange drawn on the bank by the debtor, discounts them and agrees to pay for them when they mature.
A 609 dispute letter, also known as a credit dispute letter, is a written request to credit bureaus to remove incorrect, negative information from your credit report. While many people call these ...
e. A banker's acceptance is a commitment by a bank to make a requested future payment. The request will typically specify the payee, the amount, and the date on which it is eligible for payment. After acceptance, the request becomes an unconditional liability of the bank. Banker's acceptances are distinguished from ordinary time drafts in that ...
A circular letter of credit was a letter of credit issued by a bank or related financial institution to a private person, usually an individual of means, which enabled that person to draw funds from correspondent banks while traveling. This was considered safer than carrying large sums of cash. Early examples of the use of personal letters of ...