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It's not a prepayment. It's a line of credit. Think closer to a credit card with a limit instead of money out of pocket.
by eadler 3y ago
It's not a prepayment. It's a line of credit. Think closer to a credit card with a limit instead of money out of pocket.
- gingerrr 3y agoThe difference between a line of credit and a letter, afaik, is you can't regenerate available credit with a letter by paying back. The letter of credit is a one-time sum, so you can't pay down partway through to extend the lifetime loan amount. I'm not a financial analyst so take with grain of salt, that's just how I'd heard it discussed in banking.
- donedeals 3y agoIt’s a letter of credit not line of credit. It’s basically a certified check in a way.