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Straight Credit

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Dictionary Says

Definition of 'Straight Credit'

A special type of letter of credit. Straight credits must be presented either on or before their date of expiration at the paying bank. They can only be used to pay their specified beneficiary.

They are also known as "good faith loans."
Investopedia Says

Investopedia explains 'Straight Credit'

A straight credit is backed only by the borrower's promise to repay. It is not backed by collateral of any kind, hence their alternate name.

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