For businesses that import goods, Letters of Credit are lending arrangements for imports that guarantee payment to the exporter, provided the proper documents are submitted. They can help your company establish a strong buying reputation in today's global market.
- A Stand-by Letter of Credit primarily used to ensure payment to a beneficiary in the event the applicant fails to pay or perform.
- A Commercial Letter of Credit ensures payment to an international or domestic seller of goods.
- Export Letters of Credit are frequently used by U.S.-based exporters to ensure payment from a foreign buyer.