What is the fee for a letter of credit?

Answer The fee for a letter of credit is noted as a percentage of the amount needed and is expressed as a percentage, typically around 1% to 2%. There are often minimum charges, as the letter of credit is... Read More »

Top Q&A For: What is the fee for a letter of credit

Difference Between a Letter of Credit & a Standby Letter of Credit?

A letter of credit and a standby letter of credit are similar services offered by banks to aid financial transactions between buyers and sellers. The bank issuing either of these letters guarantee... Read More »

What is a standby letter of credit?

A standby letter of credit, or SLOC, is a written document that banks issue as assurance the bank will pay a beneficiary money owed by the bank's client if the client doesn't pay himself.Significan... Read More »

What is the cost of a letter of credit?

The fee for a letter of credit is based on a percentage of the amount of the letter. Since letters of credit are sometimes never used, banks often charge a minimum to draft one for a client to comp... Read More »

What Is an Irrevocable Letter of Credit?

An irrevocable letter of credit guarantees that a buyer will pay a seller on time and for the full amount owed, according to Investopedia. The letter cannot be canceled. Most irrevocable letters of... Read More »