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.