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We can help your next deal go smoothly by providing a guarantee of payments to a third party.

Key Features

  • Provide Guarantee on Payments
  • Can Replace Need for Insurance
  • Provides guarantee on payments of large purchases to third parties, such as vendor or the government, such as:
    • Submitting bids for sale or purchase of goods
    • Can also be used to guarantee the performance of a service
  • Terms are set by third party
  • Principal generally due on demand
    • No principal balance exists unless payment is required under the terms and conditions of the letter
  • Can replace need for insurance company performance bond
  • Fee is based on face value amount
  • Interest accrues only if beneficiary requests an advance