A Letter of Credit is a document issued by the bank that guarantees payment, for a specified time period, up to a stated amount.

There are any number of reasons for which a Letter of Credit might be required. Here are two common situations that require a Letter of Credit:

• You seek to purchase materials or product from someone who has not had experience with you. Rather than sell you the items with payment to be made C.O.D. or in advance, the seller may request that you provide a Letter of Credit as part of ongoing purchases.
• You are going to build or remodel a property. The city or village may ask you to provide a Letter of Credit to guaranty that you will do certain things at the site, such as plant specific trees when you are done.

Ravenswood Bank looks forward to meeting your needs so your company and projects can be successful.