Letters of Credit
A Bank's Guarantee of Credit
A Letter of Credit is an instrument issued by a bank whereby the bank agrees to pay up to a certain amount of money, to a specified beneficiary, upon receipt of documents required in compliance with the terms and conditions of the Letter of Credit. Different types of business transactions require various types of letters of credit. To provide the best service possible, American Savings Bank offers three letter of credit choices:
Documentary Letter of Credit
Helps to finance the purchase of merchandise. Requires presentation of certain documents with compliance to the terms and conditions before payment can be effected.
Standby Letter of Credit
Represents an obligation to make a payment to a beneficiary for funds borrowed by, advanced to, or for account of the customer, for indebtedness undertaken by the customer, or default in the performance of an obligation. It is used for such business activities as performance bonds, advance payment support and progress payment guarantees.
Export Letter of Credit
As an exporter (seller), a customer's objective is to receive payment as quickly as possible. In order to guarantee payment ask for a Letter of Credit to be issued.
Benefits Your Business Will Receive
- Buyer can use bank's guarantee as opposed to waiting until business credit is established
- Competitive prices
- Around-the-world capability and experienced staff
- Beneficiary is assured of prompt payment
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Fast Facts
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Handling Fee
Contact our International Services Department
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Processing of Funds
Funds are paid promptly once compliant documents are received by the bank |
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Turnaround time
Letter of Credit issuance is within 2 business days
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Send Letters of Credit Online
Use American Savings Bank's TradeEnabler, an Internet trade services system, to submit your letter of credit application online — anywhere, anytime! More
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Highlights Below
