Letters of Credit

A handshake used to be all you needed to solidify one's word. Today, big business is a very different landscape. A letter of credit can provide your business with extra credential support to enhance your possibilities with a new supplier. Nobody knows your finances better and wants you to succeed more than a bank centered right in your own community. Let NorStates Bank help ensure your company's success.

Summary
  • Provides guarantee on payments of large purchases to third parties
  • Can replace need for costly insurance company performance bond
  • Can also be used to guarantee a service
  • Typically issued for 1-year term or less
  • Terms easily renewed
  • Fee is based on face value amount
  • Interest accrues only if we must make payment to beneficiary on your behalf

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