2007-03-04 03:06:02 · 2 answers · asked by briknapp2003 1 in Business & Finance ➔ Credit
This is the leading website for information on letters of credit, including standby letters of credit...
http://www.creditmanagementworld.com/letterofcredit.html
I could type the answer here, but it's much simpler to just read the information from the site under the heading standy letter of credit.
2007-03-04 07:42:46 · answer #1 · answered by pagamenews 7 · 0⤊ 0⤋
It's usually a letter of credit that can be presented on short notice.
Much international trade is done using letters of credit. The seller gets the letter that states the bank is holding the money and will release it on proof of shipment or receipt - whichever is specified in the contract.
The standing letter just saves the buyer from having to set up a new letter of credit for each transaction it enters into.
2007-03-04 11:46:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋