Providing commercial and standby letters of credit.
Letters of credit are traditional financial trade instruments used to facilitate international transactions while reducing risk for both buyers and sellers.
Wells Fargo provides a full range of letter of credit services including:
- Commercial export and import letters of credit
- Standby letters of credit and demand guarantees
Export letters of credit
When selling internationally, the agreed-upon terms between you and your overseas customer can make a significant difference in your cash flow. When you ask your buyer to pay you under a letter of credit, you substantially reduce the risk of nonpayment.
Import letters of credit
An import letter of credit (L/C) issued by Wells Fargo ensures that you won’t have to pay for the goods you import until they are shipped and that all documents are verified and in order. Also, by offering your supplier protection against cancellation, an L/C may help you get a lower price. Backed with the guarantee and financial resources of Wells Fargo, our import L/C service can help you broaden your supplier base and gain more control over the payment process.
Standby letters of credit and demand guarantees
Standby letters of credit (SBLCs) and demand guarantees (DGs) are flexible tools your business can use to support any type of agreement or contract. SBLCs and DGs enhance agreements and contracts by assuring your fulfillment, and Wells Fargo’s credit ratings can often raise your credit standing domestically and internationally. Companies frequently use SBLCs and DGs to help secure new business opportunities.