To guarantee that certain business transactions go through smoothly, F&M issues two 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.