Doing business in today's globalized world can be a complex endeavor. Even if all of your business is local, a handshake is no longer enough to assure a vendor or contractor of payment. A business standby letter of credit is a guarantee from your bank to the people or companies you do business with that they will be compensated if you fail to pay the agreed-upon amount or otherwise neglect to meet the terms of your agreement.
Vision Bank has provided financial services to Oklahoma businesses for more than a century. We offer local expertise, friendly service, and customized solutions to your business banking needs. When it comes to a business standby letter of credit, we can help you analyze a number of situations and options for creating a guarantee that maximizes your interests while providing reassurance to your clients and business partners. Choose the community bank that understands your local business needs and concerns as well as you do.
How does a business standby letter of credit work?
A business standby letter of credit is essentially a guarantee that your business is as good as its word. When you enter into a contract or agreement to pay for or provide goods and services, your clients and partners know they can trust you to follow through or they will be appropriately compensated. Therefore, a business standby letter of credit may give you a competitive edge when you bid for a project or negotiate a deal.
When a letter of credit is provided, the recipient pays a commission rate at the time of issuance and then on each annual or other renewal date. As a locally owned bank, Vision Bank offers competitive rates and more flexibility with terms based on your business circumstances and the scope of your letter.
Contact our business lending team today!
See the difference when you collaborate with Vision Bank on a business standby letter of credit. To learn more about this type of financing and what it can do for your company, call us today or stop by your local Vision Bank office in Ada, Durant, Shawnee, Prague, Meeker, Davis, or Sulphur.
Contact Vision Bank by email or call us at 888-332-5132. Click here to download a Commercial Loan Application. Fill it out, print it and bring it into one of our convenient locations.