Standby letters of credit
Bank of the West issues contract and financial Standby Letters of Credit (SBLCs)1 that can help your business gain a competitive edge and drive growth. Bank of the West and BNP Paribas’s well-coordinated trade network supports your business with operational and pricing efficiencies for the issuance of SBLCs.
Advantages of our SBLC issuances
When it comes to SBLC issuances, Bank of the West and our parent company, BNP Paribas,2 differ from our competitors in critical ways:
- High credit ratings3
- Local advice in the U.S. from dedicated, U.S.-based product specialists and our Los Angeles-based operations team
- Global reach through the BNP Paribas network spanning 75 countries4
- Ability to accommodate large SBLC amounts by building a syndicate and issuing the instruments on behalf of the syndicate
Contract SBLCs and Financial SBLCs
Contract Standby Letters of Credit can be core enablers of commercial success when your business competes for a contract, and can be used to secure your bidding process, advance payments, or contract performance and warranty obligations towards your clients.
Financial Standby Letters of Credit can secure a financial obligation and be a credit substitution tool typically required for your business to operate. They are often needed in situations including bond issuance enhancement, insurance premium payments, lease/rental payments, and tax/customs payments or disputes.
1Credit subject to approval.
2Bank of the West is a wholly owned subsidiary of BNP Paribas.
3Standard & Poor’s long-term issuer rating for Bank of the West is A- (as of September 30, 2016).
4BNP Paribas’ trade center network in 11/15.
5Greenwich Associates 2015 European Large Corporate Trade Finance Study (October 2015).
6Certain capital markets & investment products referred to in this document are: (i) not insured by the Federal Deposit Insurance Corporation (FDIC); (ii) not deposits or other obligations of the financial institution and are not guaranteed by the financial institution; and (iii) subject to market fluctuations or investment risks, including possible loss of value and/or loss of the principal invested.
Investment and Insurance Products:
- NOT FDIC INSURED
- NOT BANK GUARANTEED
- MAY LOSE VALUE
- NOT A DEPOSIT
- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY