A letter of credit is WoodTrust Bank's guaranty to a seller that the buyer’s payment will be received on time and for the correct amount. Letters of credit may also be used in foreign transactions and are referred to as Import/Export Letters of Credit.
While a letter of credit is used to effect payment for goods and services, a standby letter of credit serves as an assurance that an applicant will fulfill the obligations under a contract. Standby letters of credit can be used to support a number of situations including performance under a contract, payment to a supplier, support of workers compensation, or industrial revenue bonds.
WoodTrust Bank and its commercial lenders are available to provide direction and expertise with this type of lending facility.
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Consumer Banking