Embarking upon new large-scale or international business relations? Build a foundation based on trust and respect with a bank-backed letter of credit that can also yield lower costs in regard to insurance bonds.
- 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