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FDIC-Insured - Backed by the full faith and credit of the U.S. Government

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FDIC-Insured - Backed by the full faith and credit of the U.S. Government

Standby Letters of Credit

Trade letters of credit help eliminate the obstacles involved in foreign trade. Provident Bank can mitigate risk by facilitating the receipt and payment of goods on behalf of both parties. So, no matter where in the world you’re doing business, we’ll be there.

Letter Of Credit

Strengthen Your Transactions With Security and Reliability

Domestically, standby letters of credit guarantee payment to a vendor or supplier so a product or service can be delivered in return. These protect a third-party, such as a landlord or supplier, from any losses it would incur if your business failed to perform some obligation. Additionally, these credits frequently are used with payments for unpaid invoices or monetary performance under a contractor project.

Features:

  • Fixed Standby Letters of Credit cannot be cancelled or changed without the consent of all parties involved (applicant, beneficiary and the issuing bank).
  • The beneficiary relies upon the creditworthiness of the issuing bank and not the applicant, and is assured of receiving payment if all terms and conditions of the Standby Letter of Credit have been complied with.
  • The Standby Letter may be transferred to a third party if it is so stipulated.

Benefits:

  • Facilitates the following types: Performance, Advance Payment, Bid Bonds, Financial, Letters of Credit.

 

Requirements:

  • Note that you will need to have a credit relationship in place prior to requesting a Standby Letter of Credit

Trade letters of credit help eliminate the obstacles involved in foreign trade. Provident can mitigate risk by facilitating the receipt and payment of goods on behalf of both parties. So, no matter where in the world you’re doing business, we can assist.

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Frequently Asked Questions