Letter of Credit
At Island Savings, we're pleased to provide our commercial members with letters of credit confirming their relationship with us.
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A letter of credit is handy if you own a business and need contract assurances on construction projects, or a home builders warranty—it serves as a guarantee to the seller that it will be paid by the issuer of the letter of credit regardless of whether the buyer ultimately fails to pay.
Key Features & Benefits
- Eliminate the need to make advanced payments or deposits
- Guarantee of payment to your suppliers
- Improve payment terms with your suppliers
- Conserves cash flow and working capital by eliminating the need to make advanced payments or deposits
- Demonstrates your credit worthiness and gives you greater access to key suppliers
Here's how it works:
- Contact your Business Banking Advisor at Island Savings
- You make a deposit with us (in Canadian dollars)
- We then give you a letter verifying that we'll be responsible for your debt (up to an approved amount) should you default. The maximum individual Letter of Credit amount is $3,500,000.
- Send this letter to your potential creditor, and you’re good to go!
Have questions? Contact us today for more information about getting a letter of credit.
Let us know if you need a letter of credit by using our online form—we'll review your request and get back to you shortly.
If you're more comfortable coming in to see us, we'd be happy to chat with you about getting a letter of credit with us.
If you’d like to call us, please contact any of our business banking advisors.