Letter of Credit
$2.00
A letter of credit, or “credit letter” is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a letter
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![What a bad surprise I had when I received your notice dated [DATE] with our check enclosed marked "insufficient funds". No need to mention that I immediately called my bank.](https://www.valuegovernance.com/wp-content/uploads/2020/02/VGB00494.1-641x906.png)
