The 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 on

The 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.