Letter of Credit

Overcome complicated business deals
with letters of credit

We provide this service to our clients who wish to acquire a letter of credit to guarantee payment under certain specified circumstances. Most often, this form of payment guarantee is used for international purchases where they may be different laws and both the buyer and seller have never met in person due to distance.

A letter of credit may be used to assure that the payment will be processed. In some cases, a letter of credit may be drafted in a way that makes it a transferable credit, and the seller may turn over the payment to a third party and give them the right to withdraw the payment. We typically request that the client tender cash or a pledge of securities to serve as collateral before we issue you a letter of credit.

After placing a request for a letter of credit, it will be issued to you in a few days, typically within two business days. We issue our letters of credit according to industry regulations and they are overseen by The International Chamber of Commerce Uniform Customs and Practice for Documentary Credits.

The kinds of letters of credit we issue

Revolving letter of credit

You are able to make multiple amounts of draws on an account within a particular time frame. You can make it limited to a certain number.

Confirmed letter of credit

Mostly for international transactions. A different bank besides the issuing bank can guarantee the letter of credit for you. It is most likely the sellers bank and they will ensure payment to the seller if your bank defaults.