Understanding Standby Letters of Credit
We’ll guide you through the range of situations in which standby letters of credit are required.
These can include posting bid and performance bonds under contracts, assuring suppliers that they will be paid, and more.
A Fifth Third Bank Standby Letter of Credit* can:
- Establish your creditworthiness in domestic and international markets
- Mitigate the need to provide cash deposits or more complicated forms of surety, such as bid and performance bonds issued by insurance companies
- Be a lower-cost option than a bid or performance bond
- Allow you to obtain local bonds and guarantees for your foreign contracts via our correspondent network.
Fifth Third Bank clients can request the issuance of standby letters of credit through Fifth Third Global Trade DirectSM