Phone: 1-847-244-6000

Letters of Credit

A NorStates Bank letter of credit is a perfect fit when you have a business transaction that requires you to guarantee a payment or service (such as delivery of goods). Our letters of credit can be especially helpful in international commerce. Interest accrues only when an advance is issued at the request of the beneficiary.

Summary

Ideal to guarantee payments on large purchases
Can also be used to guarantee a service
Typically issued for a 1-year term or less
Fee is based on face value amount
Interest accrues only when beneficiary requests an advance
Can replace need for an insurance company performance bond