Letters of Credit
An increase in trade facilitation among many countries has allowed the U.S. to expand its business transactions with other countries. At IBC Bank, we help you facilitate your trade engagements by offering letters of credit (L/C). Whether doing business with a foreign or domestic company, Letters of Credit are among the most important and secure financial tools available for your trade. Most importantly, a Letter of Credit helps reduce the risk of your trade transactions with foreign individuals or corporations.
At IBC Bank, we have a variety of Letters of Credit to suit your needs:
- Import or Domestic Letters of Credit - guarantee payment to a domestic or foreign supplier on behalf of the importer. This instrument transfers the financial obligation from the customer to the bank.
- Export Letters of Credit - facilitate international trade for the exporter by offering them a high level of security by stating that they will be paid for their goods or services. This helps the exporter expand their business opportunities internationally while minimizing risk.
- Standby Letters of Credit - issued on behalf of a customer to facilitate engagement in contracts with other individuals. IBC Bank assures that the customer will fulfill the contract terms with the beneficiary. A Standby Letter of Credit is also commonly used to support a customer's creditworthiness.
In addition to our Letters of Credit, we also offer Documentary Collections. At IBC Bank, we will act as an intermediary to collect payments in exchange for transferring documents that give title to the possession of goods. This is an alternative to a Letter of Credit.
You must be an IBC deposit or loan account holder to qualify for Letter of Credit services.
If you would like to download a Letter of Credit application, please click on the corresponding link below:
Download a Commercial Letter of Credit Application
Download a Standby Letter of Credit Application
For more information, please get in touch with IBC Bank's Letters of Credit Department by visiting the nearest IBC Branch or calling (956) 722-7611 extension 26234 or 26520 and/or by email at lcdepartment@ibc.com.