Letters of Credit
At Integris we have many different financing options available for businesses including Letters of Credit. A Letter of Credit, for example, may be requested for construction projects as a condition to building permits.
A Letter of Credit may be requested in order for a contract to be approved. This may allow your business the opportunity to increase your receivables, as opposed to losing out on possible business opportunities.
Contact your Commercial Account Manager for more details and financing options regarding your Letter of Credit.
What is a letter of credit?
A letter of credit is a guarantee that work will be done. If the contract is not fulfilled, the funds from the Letter of Credit are used to pay a third party a specified amount, upon their request.
Existing capital from the business may be used to fund the Letter of Credit, or money may be borrowed in the form of a loan to fund the Letter.
Once the details are worked out a contract is drawn up with terms and conditions. When all obligations of the contract are met the funds are released back to the borrower.
Benefits & Features:
- A Letter of Credit can eliminate the need to deposit cash directly with the beneficiary
- Competitive rates – Letters of Credit fees are less than loan interest
- Secured and unsecured Letters of credit are available
- One year terms available, renewed annually until cancelled