Letters of Credit
A handshake used to be all you needed to solidify one's word. Today big business is a very different landscape.
A letter of credit can provide your business with extra credential support to enhance your possibilities with a new supplier — especially when it comes to international commerce. Nobody knows your finances better and wants you to succeed more than a bank centered right in your own community.
Summary
- Provides guarantee on payments of large purchases to third parties
- Can replace need for costly insurance company performance bond
- Can also be used to guarantee a service
- Typically issued for 1-year term or less
- Terms easily renewed
- Fee is based on face value amount
- Interest accrues only if we must make payment to beneficiary on your behalf
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