Advertising

Letters of credit

• Letters of Credit (LC) is an example of OBSAs (Off-Balance Sheet Activities). LC simply says that if a firm cannot make a promised payment within say 90 days, the bank will make the payment. There is no immediate liability that shows up on the balance sheet and the bank earns a fee income for the guarantee.

 
 

Follow this link for all the terms related to credit.

 
 Embedded terms in definition
 Balance sheet
Credit
Firm
Income
Liability
Will
 
 Related Terms
 

<< Letter to shareholders Level coupon bond >>

Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

Always bear in mind that your own resolution to success is more important than any other one thing. - Abraham Lincoln

Advertising



Copyright 2009-2018 GVC. All rights reserved.