Letter of Credit
Provide assurance to vendors and any third party that they will receive full payment of a contract under any circumstances. By initiating a letter of credit, third parties know that your project is backed up by the financial strength of First Hope Bank.
A letter of credit can also be used to replace the need for insurance company performance bonds, reducing your associated costs.
- Ideal to guarantee payments on large purchases
- Ideal for international transactions
- Typically issued for 1-year term or less
- Terms easily renewed
- Can replace need for insurance company performance bond
- Interest accrues only if beneficiary requests an advance