Letter of Credit
We support qualifying customers by issuing letters of credit for certain types of purchases. A letter of credit from our bank guarantees that the payment made by a buyer to a seller is accurate and will be received on time. Then, if a buyer is unable to satisfy the payment terms, our bank will cover the amount of the transaction.
A letter of credit is essentially a financial contract between Texas Gulf Bank, our customer, and a beneficiary. We offer Standby Letters of Credit that can help our customers navigate complex transactions.
Standby letters of credit can be issued for either international or domestic business use. This type of letter of credit serves as a safety mechanism in the event that something occurs preventing the buyer from making the agreed-to payment to the seller (e.g. filing for bankruptcy).
If a buyer defaults on the agreement, our bank will guarantee payment to the seller if the seller satisfies all of the agreed-upon terms of the contract.
Loan Requirements for a Letter of Credit
Letters of credit are underwritten the same as a loan. Therefore, you must qualify and provide acceptable collateral to be approved for one of our letters of credit. To protect our customers and our bank, we have certain lending requirements. Consider our loan application process and whether you might qualify. We ask for but are not limited to the following:
- Three most current filed tax returns, business financial statements, and personal financial statements.
- An explanation of the collateral that you are putting up to back the loan.
The loan application process usually takes approximately 2 weeks.
Get Started on a Letter of Credit
Texas Gulf Bank has helped many small businesses successfully secure a letter of credit to support their business activity. To learn more about this type of loan we offer, or to speak with a lender, call Texas Gulf Bank at 1-800-467-7216, use the contact form below to email us, or visit one of our many local banking centers.
All loans are subject to credit approval. Your company needs to meet loan-specific qualifications. It is best to have all of the documents and information required to apply collected prior to visiting with one of our bankers.
Contact us today to experience the Texas Gulf Bank difference. We are committed to your growth.