Landlords often prefer a letter of credit (LoC) instead of cash from companies for their commercial lease security deposits. Since everybody’s doing it, it can’t be that bad, right? As it turns out, there are some surprising truths about an LoC which many businesses don’t know.
Don’t make a decision without reading the 3 things you must know about LoC’s.
As many tenants know, the security deposits demanded by landlords for commercial leases can be onerous. The size of a commercial security deposit is determined by the credit worthiness of the tenant and the landlord’s out of pocket transaction costs, such as the amount of money they’re spending to build out the space.
Download the whitepaper to learn more the 3 most important factors about commercial security deposits and letters of credit.