In many ways, standby letters of credit (SLCs) perform similar functions for a borrower as do loan commitments.

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Standby letters of credit (SLCs) and loan commitments both provide a level of assurance to a borrower that funds will be available when needed. Both are issued by banks and can be used to support a wide range of financing needs. However, there are also some key differences between the two, such as the terms and conditions under which they can be drawn upon.

In Many Ways, Standby Letters of Credit (SLCs) Perform Similar