Letters of Credit (LOC)

    A handshake used to be all you needed to solidify one's word. Today, big business is a very different landscape.

    A letter of credit can provide your business with extra credential support to enhance your possibilities with a new supplier — especially when it comes to international commerce. Back your value with the help of Volunteer State Bank. Nobody knows your finances better and wants you to succeed more than a bank centered right in your own community.

    Summary
    • Provides guarantee on payments of large purchases to third parties
    • Helpful when embarking upon new business relationships
    • Can replace need for costly insurance company performance bond
    • Can also be used to guarantee a service
    • Typically issued for 1-year term or less
    • Terms easily renewed
    • Fee is based on face value amount
    • Interest accrues only if we must make payment to beneficiary on your behalf