By definition, a Letter of Credit is the written undertaking by a bank, made at the request of the applicant, to honor drafts or other demands for payment to the beneficiary for merchandise shipped or services performed.

Letters of credit (L/C) are one of the most common and safest methods of payments for international business. Exporters often spend a great deal of time and money obtaining export documents complying with letter of credit terms. Colorado State Bank and Trust's International Banking Center can assist you in facing these challenging requirements.

• Professional assistance to review a letter of credit for unusual terms.
• An export L/C worksheet is available to aid in the negotiation of acceptable terms.
• Authentication of L/C and communication to an international network of banks by the Society of Worldwide Interbank Financial Telecommunications (S.W.I.F.T)
• Prompt one day turnaround on the review of documents presented for negotiation.
• Competitive pricing- No discrepancy fees.
• Confirmation of a letter of credit is available to eliminate foreign bank and country risk.
• Banker's Acceptance Financing (see International Trade Finance for details)
• On-line services available to notify receipt of funds
• Assistance with Transferable Letters of Credit and Assignment of Proceeds.
• Examination of documents against the terms of the L/C before sending them on to the foreign bank and claiming payment.
• Assistance with interpreting the language of a letter of credit to ensure that your documents are prepared in compliance with the terms.

Exporter's Plus was designed to assist exporters with the complete process of document preparation, compliance, and payment collection involved in your letter of credit transactions. It is our goal to provide you with the highest level of international banking services from start to finish of the L/C process. By having our banking specialist prepare the required documents for you, you will be able to benefit from the following:

• Simplified L/C procedures
• Improved cash flow
• Retain the credit enhancement of the L/C
• Reduce costly errors
• Saves you time and money

Import Letter of Credit

Competitive advantages often come from the purchase of overseas goods. Establishing a dependable payment history with suppliers is critical to developing a supplier relationship. Colorado State Bank and Trust's International Banking Center assists companies develop this relationship by issuing letters of credit on their behalf. Some of the benefits include:

• Our staff of knowledgeable banking professionals
• Assisting companies prepare import letters of credit with a recommendation on terms.
• Pre-advise of the pending issuance of a letter of credit when speed is of the essence.
• Processing letter of credit applications the same day is the kind of personal service companies have come to appreciate.
• Advisement of letters of credit and communication to an international network of banks by the Society of Worldwide Interbank Financial Telecommunications (S.W.I.F.T).
• Prompt delivery of documents upon review and acceptance of any discrepancy.
• An in-house, on-line remote system is available for large importers.
• Competitive pricing.

Standby Letter of Credit

Standby letters of credit can enable your company to secure a financial or performance obligation with the beneficiary.  International business may require a surety performance in the use of a standby letter of credit. Standby letters of credit may be used in conjunction with or substituted for a bid bond. A standby letter of credit also may be used for the issuance of a performance bond for such surety for down payments or warranty requirements. Using Colorado State Bank and Trust's International Banking Center's experience in these areas assists companies in the bidding process and complying with contract requirements.

Our letter of credit specialists can assist you to structure a standby letter of credit that protects your company's best interests and satisfies the beneficiary's requirements.   Standby letters of credit can be issued for a domestic or an international transaction.

If you are the beneficiary to a standby, we can assist you with reviewing the language of the L/C, and in the event you must draw on a standby, we can assist you in the collection process.