Looking for a way to establish a solid relationship with a company with whom you have little or no history? Letters of Credit are guarantees of payment to help you make purchases or transact business with companies with whom you have limited trading experience or credit history. Cash or marketable securities are generally used to secure the credit.
Peoples Bank offers two types:
> Commercial Letters of Credit – used to facilitate trading activity between businesses.
> Standby Letters of Credit – serve as an assurance to others that your business will meet its contractual obligations