Learn how a transferable letter of credit enables a primary beneficiary to transfer credit to others, securing payments for suppliers, and facilitating smoother international trade.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of ...

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 ...

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 ...

Accounting for a letter of credit on your balance sheet depends on when you use it. One issued by your financial institution acts as a credit substitute. That institution, often a bank, steps into ...

No matter how diligent you are with your money, there are a variety of unpleasant life events that can temporarily put a crimp in your credit, such as a medical emergency or a job loss. To make ...

Many credit line agreements contain restrictive covenants and other contingencies that may limit the ability of borrowers to draw on their lines, which is a particular concern to small firms. This ...

If your credit report has any negative history, or if there is something in your mortgage application that requires more information, a lender may ask you to submit a "letter of explanation." This isn ...

Credit card balances have reached unprecedented levels nationwide, with Americans collectively carrying over $1.23 trillion in credit card debt currently. And, as credit card rates remain elevated and ...

Lindsay VanSomeren is a personal finance writer based out of Kirkland, Washington. Her work has appeared on Business Insider, Credit Karma, LendingTree, and more. Jordan Tarver has spent seven years ...