Letters of credit are a tool that can aid in business transactions. These documents can serve as a mechanism for payment during certain business transactions. In order for a letter of credit to be valid, a number of criteria must be met.
Those in the business of offering funds to help others pursue business interests can face many ups and downs. Creditors can share in the triumph of a successful business endeavor while also feeling the loss of a poorly planned venture.
Creditors go about receiving payment in a number of ways. After multiple attempts, some may sell off old debts to third-party debt collectors. The practices used by these businesses have been scrutinized. Now one of those practices is under review by the highest court in the country.
A case that is set to be argued at the Supreme Court of the United States (SCOTUS) could have major implications in the bankruptcy world. The case involves a company that filed for bankruptcy shortly after a buyout.
Merger and acquisition (M&A) deals that involve businesses from two different countries make up over one-third of all worldwide M&A transactions. These transactions can have legal ramifications that impact not just the businesses and their shareholders, but also impacts creditors who are attempting to collect on debts.
A recent ruling out of the U.S. Court of Appeals for the Fourth Circuit is gaining attention for its decision supporting a bankruptcy court's holding that a portion of a loan could be re-classified.
Creditors can face many obstacles when attempting to receive payment from a client. Although many clients pose no problems, others make things more difficult. One such obstacle: bankruptcy.
Creditors provide consumers with a great service. In exchange for providing consumers with much needed funds, the consumer can purchase goods. This transaction is completed with the trust that the consumer will pay back these funds.
Bankruptcy is a process that is designed to offer those who are approved with a fresh financial start. Although this process can be beneficial to business owners that find themselves struggling financially, it can lead to serious difficulties for the creditors that provided the backing for these entrepreneurs to get their business running or those that sold products to the business and are awaiting payment.