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Posted by / 05-Aug-2020 00:08

Jill meets jack student dating

When the deadline arrives, the project is not complete.With a standby letter of credit in place, the contractor’s customer can demand payment from the contractor’s bank.

A standby letter of credit is similar to a standard (or “commercial”) letter of credit: The bank promises to pay a beneficiary as long as the beneficiary provides documents and meets the requirements of the letter of credit. Backup plan: A standby letter of credit is a safety net.

But if the customer’s credit is in question, banks may require collateral (or funds on deposit) for approval.

Performance standby LOC: A contractor agrees to complete a construction project within a certain timeframe.

You most likely need to work with the bank’s commercial division or international trade department.

Be sure to take plenty of time to understand how the process works what circumstances make you responsible for payment.

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Hire an experienced attorney to review the documents with you.