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.
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.
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.
For our clients who are traveling abroad, this kind of letter of credit can be used to guarantee an issuing bank.
With this kind of letter of credit, we make a direct payment to the beneficiary of the transaction, whether it is to the seller or a third party.
MetroBancorp has long term experience with the provision of premium bank instruments. We specialize on assisting businesses around the globe whose existing bank facilities are unable to meet their requirements.
Bank Guarantees provided by MetroBancorp are designed to protect your commercial interests by eliminating the need to prepay for products or services or to put up collateral with your bank. They are helping to reduce your risk and support your cash flow.
Fill out the application form for your desirable letter of credits.
