Standby Letter of Credit
THE CASH ALTERNATIVE.
To win business domestically and worldwide, you may be required to provide security that your bid will be honored. Or you may need to provide a performance guarantee or security deposit for your office space. This can impact your cash flow, making it more difficult to support existing business as well as win new deals. Standby letters of credit can be used in lieu of security or cash deposits. Features and benefits include:
- Variable terms
- Guaranteed payment to a third party in the event of non-performance by HSBC customer
- Improved cash flow management
- Elimination of extensive credit investigations
- Lowered supply costs and increased number of international suppliers
- Reduced risk
