International Banking Services
Letters of Credit for International Transactions
Balancing Risk Between Seller and Buyer
Ensure payment and movement of goods in international trade contracts, as a buyer or seller, with commercial letters of credit. Associated Bank offers import/export and standby letters of credit services, as well as documentary collections. Process and manage your transactions efficiently and securely using our online Trade Services system.
Import / Export Letters of Credit
Letters of credit provide the exporter assurance of payment from the importer's bank, if all the terms of the letter of credit are met, while providing the importer evidence the shipment was made. Associated Bank maintains high service standards.
We help you instruct customers abroad on preparing their letters of credit for you to avoid difficulties and minimize costs. Call your Associated Bank Relationship Manager about import/export letters of credit to support your international trade today.
Standby Letters of Credit
The standby letter of credit is typically a backup source of payment, intended to be drawn on only in the event of a default under the original payment agreement. Common uses include:
- Securing open account payment terms
- In lieu of bid, performance and warranty bonds under contracts
- Advance payment guarantee
- Securing payment of a loan or other financial obligation
Ask your Associated Bank Relationship Manager for details.
A somewhat less secure alternative to letters of credit, documentary collections are best for transactions with established customers or importers whose credit is good or excellent or the transaction amount is relatively moderate.
Letter of Credit Confirmations
A letter of credit confirmation assures the beneficiary of payment under the letter of credit terms, regardless of the issuing bank’s stability or the related country risk. Ask your Associated Bank Relationship Manager how you might benefit from using confirmed letters of credit.
For more information, email us at InternationalBanking@associatedbank.com.