Letter of Credit - an assurance to a creditor that you will pay as promised
Occasionally, business members are required to obtain a Letter of Credit. This service is a guarantee of payment to an outside company or supplier, either domestic or international. This guarantee of payment will give the supplier the comfort of knowing that the goods or services will be honoured and payments received.
Should the supplier make a demand on the Letter of Credit, Edam Credit Union will honour it, and the payment terms will come in force as agreed. In other words, it is your financial institution saying, in effect, "This business/operation is reputable and will keep its promise."
For more information, please contact us to speak with one of our Commercial or Agricultural Lenders.