Commercial Letters of Credit
Commercial letters of credit are widely used in international trade transactions to facilitate the buying and selling of goods, lowering the transaction risk for both parties.
Export Letters of Credit:
With an export letter of credit, exporters are provided with assurances that they will be paid by the buyer. The letter of credit is issued by the buyer's bank, guaranteeing payment provided that the terms of the credit are met.
Import Letters of Credit:
M&T Bank can issue Import Commercial Letters of Credit that will allow you to:
- Obtain goods and services from suppliers without cash
- Negotiate with new suppliers offering more competitive prices or products
- Receive better terms based on M&T Bank Credit
Documentary Collections. When letter of credit or open account terms are not a fitting method of payment, using M&T Bank for documentary collections may be a viable alternative.
For imports, we receive the original shipping documents and payment request from your supplier. We then transfer payment to your supplier's bank and release the shipping documents to you, allowing you to take delivery of the goods. This method allows you to delay payment until receipt of your goods.
For exports, we forward original shipping documents to your buyer's bank giving you control of the goods until your customer pays.
Standby Letters of Credit. These letters of credit instruments are frequently required for bid bonds, performance bonds and cash payments as a means to ensure that contractual agreements between exporters and importers are carried out in an orderly manner.
Foreign Deposited Checks. For customers who receive payments in the form of checks drawn on foreign banks, we offer our Foreign Deposited Check service. We can convert many foreign currencies to U.S. dollars - helping facilitate prompt payment to your company.