Streamline your business transactions with a letter of credit (LC) from a reputable financial institution like Presence Bank. Our easy application process enables you to complete your commercial dealings quickly and effectively.
Banks issue letters of credit on your behalf to guarantee that you’ll pay another party on time and for the specified amount. The documents stipulate that you’ll pay the counterparty once they fulfill certain conditions.
For instance, if your business buys goods from a supplier, the bank will issue a document saying you’ll pay once they present evidence of delivery. If you fail to pay for the goods, the bank will cover the outstanding or full amount on your behalf. In this case, it will offer the payment as a loan facility.
An LC is suitable for international transactions where two parties have no way of knowing whether they can trust each other. It enables the buyer to prove their creditworthiness and trustworthiness by leveraging their relationship with a reputable financial institution.
An LC assures the counterparty that they’ll receive payment for providing certain services or products. By issuing the document, the bank becomes responsible for ensuring the counterparty gets its funds, covering the cost if something comes up and you can’t pay the supplier.
Banks charge a fee for issuing this guarantee.
A letter of credit is a valuable financial instrument in B2B interactions because it delivers several benefits, including:
We issue LCs through a hassle-free application process that requires existing business account holders to submit:
We’ll then review the documents and issue the letter, allowing the counterparty to receive their payment once they have fulfilled their end of the agreement.
Banking with us allows you to enjoy the following perks:
If you need a letter of credit for an upcoming business deal, begin our straightforward application process. If you have any questions, you can call, email or visit one of our branches for assistance.
Contact us to learn more about letters of credit. If you don’t have a business bank account with us and want to access our credit services, visit a Presence Bank branch near you to open an account or apply for one online.
