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Managing Risk

Standby Letters of Credit

What are Standby Letters of Credit?

Standby Letters of Credit are the primary guarantee instrument used in North America. They provide companies with additional protection in respect of their customers performance or financial obligations. We can issue a Standby Letter of Credit on your behalf or receive and validate a Standby Letter of Credit issued by other banks in your favour. 

Benefits of Standby Letters of Credit...

Provides security

Gives your supplier confidence that you can meet your financial commitments

Safe and efficient

Provides a safe and efficient way of mobilising the working relationship between overseas trading partners.

Payment protection

Gives you protection against non-payment risk

Ready to apply

Great, thanks for choosing Standby Letters of Credit. If your Relationship Manager has confirmed you have a credit line in place to support this facility, apply online with our simple application form below.

Alternatively you can always talk to your relationship manager. If you’re a new customer with an annual turnover of less than £2 million, you can give us a call on 0345 050 1422. If it’s over £2 million, call us on 0345 050 1423.

Factsheet

Standby letters of Credit provide both buyers and sellers in a trade transaction with reassurance that either performance or financial obligations will be met. We can issue guarantees on your behalf or receive and validate guarantees issued by other banks in your favour.

Trading outside of North America?

Bonds and Bank Guarantees are the primary guarantee instrument used in in all territories outside of North America. Discover our wide range of Bank Guarantees available.

Additional support for your business

Managing risk

Help protect against the impact of exchange rate fluctuations and the risk of not being paid

MaxTrad

Our secure online platform lets you manage your international trade transactions from anywhere, 24 hours a day

Something else we can help you with?