Letters of Credit
Morrill & Janes Bank offers two types of Letters of Credit to assist your business depending upon the need.
Standby letters of credit are issued by Morrill & Janes Bank on your behalf as a promise to pay your vendor a specified sum of money upon presentation of specific documents. A standby letter of credit is typically not drawn upon unless someone has failed to perform under a contract between you and your customer.
A commercial letter of credit is an instrument issued on your behalf by Morrill & Janes Bank whereby the bank promises to pay a specified sum of money to a beneficiary upon presentation of required documents. Commercial letters of credit are mostly used in new vendor relationships when credit has not been established, or when importing goods.