Letter of Credit

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.

Summary
  • 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