Standby Letters of Credit
Standby letters of credit are often used with, or in place of bid bonds, performance or warranty bonds or as assurance of down payment refund, loan repayment or payment for open-account purchases. Bank Five Nine may guarantee payment and performance on your behalf with a standby letter of credit.
- Supports business contracts and purchase agreements
- Often used as a substitute for collateral
- Ensures your creditworthiness to vendors
- Drawn upon only if a company does not meet its obligations