Letters of Credit
Embarking on new business ventures can be a great opportunity, but often requires a little bit of work. A Letter of Credit from Carolina State Bank offers a streamlined solution. Rather than secure a performance bond through your insurance, a CSB letter of credit can validate your business for a specific service or purchase.
Who understands you more than a bank based in your back yard, who has built relationship with you? Get off on the right foot with the help of Carolina State Bank.
- Provides guarantee on payments of large purchases to third parties, such as vendor or the government, such as:
- Submitting bids for sale or purchase of goods
- Can also be used to guarantee the performance of a service
- Terms are set by third party
- Principal generally due on demand
- No principal balance exists unless payment is required under the terms and conditions of the letter
- Can replace need for insurance company performance bond
- Fee is based on face value amount
- Interest accrues only if beneficiary requests an advance