Letters
of Credit
A letter of credit is a binding document that an importer can request
from First Capital in order to guarantee payment to the seller for goods or services supplied.
In order for the payment to occur, the seller has to present First
Capital the necessary shipping and other documents confirming the delivery
of goods/services within a given time frame. It is often used in international
trade to eliminate risks such as the bankruptcy of the importer or foreign political or economic instability.
First Capital offers two types
of letters of credit through:
- Commercial letters of credit used to facilitate international
trade payment and contractual compliance
- Standby letters of credit used as a guarantee of payment
of financial obligations or performance of services
For
further information, please call 800-619-0804 or click Contact
Us. |
