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What experience has anyone had with funding a business with letters of credit?

We are currently accepting a fixed number of 40 investors/partner for an on line pharmaceutical start-up. Copy of the business plan is available upon request at Investment is 150 thousand dollar letter of credit. What experience, good or bad, does anyone have with funding or being a partner in a business funded with letters of credit? Do you think this is a better way of funding?

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Corporate Financiers

It's acceptable. I was a lender to a developer for a residential sub-division which was backed by investors L/C's. Due to the market, we cashed these L/C's in to pay down our debt - so again, this is acceptable.

I arrange financing for businesses nationwide. Importantly, I am an advisor first and intermediary 2nd. I offer guidance through the entire loan process. Let me know if I can be of assistance. I am an experienced fortune 100 banker (merrill lynch) with an accounting background (U. of Michigan and Northwestern).No obligation and no cost to the borrower.

Jul 28, 2010
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The BAF Group LLC

What is the basis for the LOC? What are the terms?

Jul 1, 2010

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