letter of credit - L/C - A
binding document that a buyer can request from his bank in order
to guarantee that the payment for goods will be tranferred to
the seller. Basically, a letter of credit gives the seller reassurance
that he will receive the payment for the goods. In order for
the payment to occur, the seller has to present the bank with
the necessary shipping documents confirming the delivery of goods
within a given time frame. It is often used in international
trade to eliminate risks such as unfamiliarity with the foreign
country, customs, or political instability.
lien - An interest in real or personal property
which secures a debt; the lien may be voluntary, such as a mortgage
in real property, or involuntary, such as a judgment lien or
tax lien.
lump sum debt negotiation - A process aimed
at getting creditors to agree to a "lump
sum" pay off for a reduced amount in full settlement
of a debt.
|
