Hacker News Reader

it sounds to me like the line of credit is just a loan, such that the money for "rent" comes from a "loan" .. no cash flow involved. whoever wrote the line of credit is the one paying the rent. In large finance groups, I get the feeling this is ordinary back-scratch behavior.

View on HN

One major difference is that with standard lines of credit it's a transaction between the bank loaning funds and the borrower only. With letters of credit, the payee is also a signatory to the contract.

edit: and I guess the payee's receiving financial institution is also a signatory if those are different entities from the payee! Or at least can be, I'm running into Dunning Kruger so I'll tap out now.

Reply on news.ycombinator.com