Is a bank letter of guarantee the same as a letter of credit?
Auction houses often are asking for a "bank letter of guarantee". Is this the same thing with a specific structure?
I do not think so. A bank letter of guarantee, would seem to be a letter from your bank stating that you have sufficient funds to purchase an object or objects not totaling more than $xxx.xx in price. A letter of credit, is simply a line of credit your bank may extend to you. It usually has a very short payback period and interest is charged. It is basically a short term loan that you can use as needed. Some banks will issue a special checkbook for the letter of credit, or you can deposit it in your account. However, because bad checks are written all the time, I could see an auction house asking for a letter of guarantee that certifies you have the funds you are seeking to spend.
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