Protect your interests and back your obligations to your business partners with a Standby Letter of Credit. Whether your company conducts business domestically or globally, a Standby Letter of Credit can support your business transactions in a variety of ways—allowing you to conduct your business easier and more securely. A remarkably versatile financial instrument, Standby Letters of Credit are widely used in the U.S. to assure financial and performance obligations under business contracts.

As one of the top Standby Letter of Credit issuers in the nation, Comerica has extensive experience in Standby Letter of Credit structuring and confirmations. Our International Trade Finance specialists are highly skilled in providing consultation and quickly tailoring Standby Letters of Credit to fit your specific needs. Plus, Comerica has a strong credit rating required for acceptance of a Standby Letter of Credit.

With Comerica’s name and credit support behind you, you can protect your own interests and provide the assurance your business partners require that you will fulfill your obligations. You’ll carry out your domestic and global transactions easily, securely, and cost-effectively.

Standby Letter of Credit Advantages

A Standby Letter of Credit offers numerous advantages over alternative methods of guarantee:

  • Optimize Your Cash Flow — by freeing funds that would otherwise be tied up as deposits
  • Enhance Your Credit Position — by leveraging Comerica’s strong credit rating
  • Reduce Your Costs — typically less costly than alternative methods of guarantee, such as bonds; typically faster and easier to get
  • Increase Your Sales Opportunities — enables you to take advantage of business opportunities that would be out of reach without its support

Standby Letter of Credit Solutions

Comerica can issue a Standby Letter of Credit for countless uses, including:

  • Bid and Performance Bonds — use in lieu of bid or performance bonds required to show a bidder’s good faith or assure performance in accordance with contract specifications
  • Advance Payment/Payment Guarantees — assure repayment of money borrowed or advanced, and payment of indebtedness or default
  • Lease Agreements — use in lieu of cash deposits required by landlords for lease agreements
  • Workers’ Compensation — use in lieu of cash deposits required by state governments if your company wishes to self-insure
  • Open Account Sales — provide a secondary means of payment if your buyer fails to pay as agreed for goods or services provided; supplement credit limits to capitalize on sales opportunities
  • Tender Offers — secure tender offers after a bid is awarded to cover expenses in event of non-performance
  • Loan Collateral — provide a secondary means of payment to your creditors
  • Industrial Revenue Bonds (IRB)/Economic Development Corporation (EDC) Bonds — provide credit enhancement for the issuance of tax-advantaged bonds to finance redevelopment projects
  • Credit Enhancement Letters of Credit — improve the credit rating for securities, bonds, notes, or commercial paper; mitigate portfolio risk through asset securitization; provide low-cost, short-term financing by backing commercial paper

Online Solution

If you regularly issue Standby Letters of Credit, simplify your process with Comerica GlobalTRADE Web®, our innovative, web-based solution. With Comerica GlobalTRADE Web you can initiate, amend, and monitor your Standby Letters of Credit, and more—all online, in real-time, 24/7.