comfort (noun, com-fort, \ ˈkʌmfərt \) letter (noun, let-ter, \ ˈletər \)
Definition:
- a) (in Banking) is an informal letter received from a bank that indicates its readiness to assist a client by offering a short-term loan should the need for it arise. Such a letter shouldn’t be confused with a letter of commitment.
- b) (in Corporate affairs) is a letter received from a parent company reassuring a subsidiary’s firm supplier or money lender and containing a promise to assist the subsidiary in case any financial difficulties appear.
- c) (in Governmental affairs) is an assurance issued by a government to a lender or supplier of a public corporation or agency guarantying that it will financially support the entity in question and help it fulfill its obligations.
In a Sentence:
- We’ve received a comfort letter from First Bank offering us a substantial loan in case we need it to cover our material costs.
- Movistar’s subsidiary firm sent a comfort letter to its main supplier to lower the tension between the parties and prove that they will make all the payments on time.
- Our state’s government promised to give our agency a comfort letter if Q-Answers refuse to wait until we can acquire the necessary funds ourselves.
Synonyms and related words: letter of application, letter of guarantee, letter of agreement, letter of moral intent
