Letters of Credit
Looking for a way to establish a solid relationship with a company with whom you have little or no history? Letters of Credit are guarantees of payment to help you make purchases or transact business with companies with whom you have limited trading experience or credit history. Cash or marketable securities are generally used to secure the credit.
Lubbock National Bank offers two types: Commercial Letters of Credit, which are used to facilitate trading activity between businesses (especially international transactions), and Standby Letters of Credit, which serve as an assurance to others that your business will meet its contractual obligations.