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We can help you with your Import/Export business by getting to know your business and trade needs. A letter of credit is a document issued by a bank to guarantee payment and/or assure performance of an obligation. They accomplish their purpose by substituting the credit of the bank for that of the customer, to facilitate trade. If your business has a need, our professional business bankers will help you with the issuance of the letter of credit, working with you to insure your commercial interests are protected.

  • Provides guarantee on payments of large purchases to third parties
  • Can replace the need for a costly insurance company performance bond
  • Can be used to guarantee a service
  • Terms easily renewed
  • Interest accrues only if we must make payment to a beneficiary on your behalf 
Standby Letter vs. Commercial Letter

The major difference between a Commercial and a Standby Letter of Credit is that a Commercial Letter of Credit (Import or Export) is a payment method for a trade transaction whereas a Standby Letter of Credit supports the payment of a debt that may or may not be trade related. 

Standby Letter of Credit

A bank will issue a standby letter of credit on behalf of a customer to provide assurances of its ability to perform under the terms of a contract between the customer and beneficiary.

Commercial Letter of Credit

Letters of credit used in international trade guarantee payment of a specified sum in a specified currency, provided the seller meets the defined terms and conditions and submits the agreed upon documents within a specified timeframe. The bank guarantees that payments are not made until the goods have been shipped and all required shipping documents are verified to be in compliance with the terms and conditions of the credit.