A letter of credit is ideal for scenarios when you're embarking upon new large-scale business relations.
- Provides guarantee on payments obligations of large purchases to third parties
- Can replace the 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