Not strictly a banking innovation, but the Medici family introduced the first model of a modern holding company, the stronghold upon which their European dominance of power lay on. A letter of credit was one of the most important financial mechanisms that allowed international trade to flourish in the 15th century. As caravans wheeled, and ships sailed around Europe distributing fine goods, the letter of credit became a necessity for travelling merchants. Theres not a bunch of overwhelming information and it is easy to sort through the different pieces of information, all the fundamentals still matter. Money Cart 3 slot will be released to the UK market first on 12th April 2023.

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• A letter of credit was one of the most important financial mechanisms that allowed international trade to flourish in the 15th century.

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Shipping large sums of money over land on a regular basis was too dangerous during this era. For this reason, traders would deposit florins (the Florentine currency of the day) in a Medici bank for a letter of credit. A letter of credit is an agreement in which the buyer’s bank guarantees to pay the seller’s bank at the time goods/services are delivered. They would be authorised to receive pounds in the London branch, for example, at 40 pence to the florin exactly 90 days after (the timing was always fixed).

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