Standby Letter of Credit

What is a Standby Letter of Credit?

Whether for yourself or your business, a Standby Letter of Credit can be used to secure a variety of transactions where a third-party guarantee of payment may replace a cash or bond deposit. It’s a strategically smart way to leverage the credit power of your portfolio. A Standby L/C is a guarantee to the beneficiary against defaults by the applicant in the performance of his commitment. It is often used in lieu of a performance guarantee; for example, to help another company obtain credit. For more information contact us.