Letters of Credit

We’ll vouch for you

Close more deals with confidence by increasing trust and reducing risk in your business relationships.

Better business starts with better relationships.

Letters of Credit provide a payment guarantee that reduces risk in complex contracts or trade deals by proving that your business is a sound investment and a trustworthy partner.

Three people seated at a conference table in an office, with two individuals shaking hands across the table during a meeting.

Protected deals

Provide a payment guarantee backed by us, to ensure terms are met for both buyers and sellers.

LMCU member at a LMCU front desk, smiling and interacting with another person, with documents and office items visible.

Local expertise

Our team knows — and means — business. We’d be happy to talk you through your big transaction.

Letters of Credit FAQs

A Letter of Credit is a financial guarantee issued by a financial institution like us. This letter ensures that payment will be made if your transaction’s agreed-upon terms are met.

By doing this, you can reduce risk for both buyers and sellers by adding us as a trusted third party to the transaction. Think of it as us vouching for you.

Letters of Credit are commonly used in large transactions, contract-based agreements, and domestic trade where large sums and payment risk is a concern.

They are especially useful when working with new partners, so you can build your business relationship on a foundation of trust.

If you need help determining whether a Letter of Credit is necessary for your next deal, give us a call.

We can prepare a number of Letters of Credit, but the most common types are Commercial Letters of Credit, used in trade transactions, and Standby Letters of Credit, used as a backup payment guarantee.

Each Letter of Credit serves a different purpose depending on the structure of your deal. We'll work with you to find the right one.

We’ll review the details of the transaction, your business’s financials, and any specific supporting documentation related to the buyer, seller, and contract terms.

Since your Letter of Credit will be unique to each transaction, the easiest solution is to meet with a local LMCU commerical lender, so they can understand the full scope of your transaction.

Costs vary depending on the size, complexity, and duration of your transaction, while fees are typically based on the amount your Letter of Credit guarantees. Connect with a lender to get your Letter of Credit pricing.

We aren’t just lenders: we’re locals.

Our business members love our commercial lending options for their flexible financing and competitive terms that come paired with personalized insights about their unique market.