Probably the most typical – a fee for standby or financial LOCs – guarantees that lenders

A page of credit cost (LOC) is any one of the kinds.

will support different business tasks. Since these LOCs are considered “borrowed funds” under money directions, the cost is usually just like the LIBOR margin.

Costs for commercial LOCs (those inventory that is supporting trade) are often reduced, because in these instances real security is submitted.