Revolving Letter of Credit
A financial agency issues a Revolving Letter of Credit to its clients and potential customers of the availability of credit facility offered. The whole concept of a Revolving letter is that it’s based on the principle of appropriate credit. Instead of issuing a letter of credit only once during the time of the transaction, A Revolving letter of credit aims to carry out this transaction in installations.
The letter contains the credit terms and conditions that are attractive to the customers and potential clients. These terms and conditions must be outlined and written in a clear and precise manner as it is in these terms that the financial transaction will take place. It is the most important element of the letter. It is one of the ways which a financial agency can generate timely income in a regular and safe manner. Make sure to attach a copy of the necessary legal documents along with the letter.
5438 Jarred Street
Raleigh, NC 27604
2562 Gorham Street
London, ON N0N 0N0
Re: Revolving Credit Facility
DUPONT BANK (the “Lender”) is pleased to present to you the availability of a revolving credit facility according to the listed terms and conditions below:
BORROWER: Jeremy Myers (the “Borrower”).
CREDIT FACILITY: Revolving Credit Line of maximum $50,000 (the “Credit”).
PURPOSE: Home Renovation
INTEREST: 4.5% per annum of the loan amount with a monthly computation for overdue interest, payable on the first of every month of the Credit period.
TERM AND MATURITY: The Credit is repayable on demand.
SECURITY: One guarantor required.
AFFIRMATIVE COVENANTS: With the Credit loan, the Borrower is obliged to fulfill the following, until the Credit is paid in full.
A) Borrower will submit annual financial statements to the Lender
NEGATIVE COVENANTS: With the Credit loan, the Borrower is obliged not to do the following without the Lender’s prior consent in writing.
A) The borrower may not execute any other Credit facility with another financial agency.
Due to the ease of doing business with your company, our partnership has been extremely beneficial. Transactions done with your business has been profitable for not only your company but ours as well. Which is why it is my pleasure to inform you that our business would once again like to extend the hand of being your sole lender in this. We hope for many more years of smooth partnership with you.
Do feel free to contact us regarding any help that you might need. We have assigned Mr. Rakesh Swarna as your relationship manager. Please find his details below
Email ID: firstname.lastname@example.org
Phone no: 338936922