Payment Guarantees/Letters of Credit Replacement

In order to release working capital and avoid the need for security, it may be possible for you to obtain a Letter of Credit Alternative or Payment Guarantee from an insurance or specialist surety company.

Letters of Credit are commonplace in commercial and international transactions and companies with high deductibles listed on their insurance policies may be asked to provide their insurer with a Letter of Credit from the bank in the event that they are unable to meet the cost of the deductible. However, a Deductible Payment Guarantee can be arranged instead of a Letter of Credit.

Applicant/Risk

  • Commercial organisations, all industry sectors.

Beneficiary

  • Commercial bodies
  • Government bodies
  • Insurance companies (for Deductible Guarantees).