Trading parties can feel confident in payment arrangements
First American Bank Letters of Credit provide assurances to parties in international trade that transactions will proceed in the agreed upon manner. The bank issues several types of letters of credit, which guarantee that a buyer's payment to a seller will be received on time and for the correct amount.
- Import Letters of Credit: Helps trading parties establish confidence by providing greater control over transactions. Through the letter of credit, the issuing bank, at the request of the buyer, agrees to make payment to the seller, provided the letter's terms have been met.
- Export Letters of Credit: Like an import letter of credit, an export letter of credit is the means of ensuring payment to the seller. However in this case the buyer is overseas.
- Standby Letters of Credit: Utilized to support an underlying agreement in which the Bank agrees to pay in the event of a default.