Letters of Credit

Embarking on new business ventures can be a great opportunity, but often requires a little bit of work. A Letter of Credit from Blue Ridge Bank offers a streamlined solution. Rather than secure a performance bond through your insurance, a BRB letter of credit can validate your business for a specific service or purchase.

Who understands you more than a bank based in your back yard, who has built relationship with you? Get off on the right foot with the help of Blue Ridge Bank.


Summary
  • 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