Letters of Credit

To guarantee that certain business transactions go through smoothly, F&M Bank processes different types of Letters of Credit:

Commercial (Import) Letters of Credit - used most frequently in international trade for import transactions.

• Guarantees that the seller will receive payment if all terms and conditions are in compliance.

Standby Letters of Credit - used most often in domestic transactions.

• Secures a customer's performance or financial obligation to another party.
• Standby Letters of Credit are not intended to be drawn on, except in the event that the applicant defaults under their obligations to the beneficiary.

Export Letters of Credit - F&M Bank advises and negotiates Export Letters of Credit and can also help you understand the terms of Letters of Credit.