Standby Letters of Credit
Standby letters of credit (L/Cs) offer a flexible financing tool your business can use to support a variety of payment or performance obligations. Standby L/Cs can simplify and streamline a wide range of financial transactions and enhance your credit standing in the process.
For your overseas shipments, standby L/Cs issued for your account can support your shipment obligations to the buyers and standby L/Cs issued in your favor can support the payment obligations of such buyers. For your incoming shipments, standby L/Cs issued for your account can support your payment obligations to the sellers and standby L/Cs issued in your favor can support the shipment obligations of the sellers to you. Standby L/Cs can also be used to support business or personal contracts, surety bonds, bid bonds, insurance obligations and various other financial instruments.
Standby L/Cs set up obligations (similar to contract obligations) between the issuing banks and the L/C beneficiaries to support the obligations of the L/C applicants to such beneficiaries, but standby L/Cs are independent from the underlying contracts or agreements between the applicants and the beneficiaries. Subject to credit approval.
How you benefit
- New business opportunities. A standby L/C can give you the financial backing you need to pursue business opportunities that might not be available otherwise.
- Real-time, electronic L/C initiation. By working with First Financial, you can control and streamline the issuance process and receive comprehensive L/C status reports.
- Lower costs. Standby L/Cs cost less than insurance bonds and are generally less expensive than posting a cash deposit to meet the terms of a project or bid. Standby L/Cs also save you time and money in arranging your sales and negotiating your sales and other contracts.
- Professional expertise. First Financial’s experienced standby L/C specialists can help you find and use the services that best meet your financial requirements. Our centralized standby L/C unit offers a single point of contact for answering questions, handling special requests, and delivering up-to-the-minute status reports on your standby L/Cs.
- Worldwide acceptance. First Financial has teamed up with Wells Fargo Bank resulting in an excellent global reputation, which ensures that these standby L/Cs are accepted universally.
Subject to credit approval