Letter of Credit

A letter of credit is a great way to establish a solid relationship with a company that you have little or no history. It is also useful for securing approval from a creditor.

A letter of credit guarantees third parties that you have enough funds to cover your purchase. It provides monetary support for obligations such as trade payments, leases, and advance-payment requirements.

Benefits

  • Helps you maintain liquidity by not forcing you to make upfront payments

  • Enables you to work with vendors whom you might otherwise not have been able to do business with

  • They can be created for a specific purpose and for a specified period of time


Since a letter of credit is basically an extension of credit, credit approval is required. Cash or marketable securities are generally used to secure the credit. For more information, contact us at 1-888-963-2000 or visit one of our branches.