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TD Securities

Outgoing Guarantees (Standby Letters of Credit)

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An Outgoing Guarantee (Standby Letter of Credit) is an commitment by a Bank on behalf of its customer that a payment will be made to the designated beneficiary should a default event occur. Standby Letters of Credit exhibit a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities.



  • Assures your buyer/seller that payment will be made by TD if default occurs.
  • When a buyer requires a bid bond/tender, advance payment, or performance guarantee to support a contract, the Issuing Bank (TD) can structure and issue a guarantee on behalf of the Exporter either directly to the buyer, or indirectly through a correspondent bank in the buyer’s country.
  • Outgoing Guarantee (Standby Letter of Credit) applications can be completed and transmitted to TD electronically via


  • Facilitates Exporters conducting business in international markets (tender process and contract completion).
  • May provide sellers with enough comfort so that a buyer may avoid prepayment for products/services.
  • May be used in place of cash security as collateral against the performance of a contract.


  • The client must have a credit facility in place for an Outgoing Guarantee (Standby Letter of Credit) to be issued. requires initial set up by a Global Trade Finance Specialist.

    December 10, 2018
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    Key Contacts

    Stephen Barr
    Head of Origination, Trade Finance
    416 308 9434Click to mail
    British Columbia
    Tracey Orr
    604 654 3358
    Alberta, Saskatchewan and Manitoba
    Eva Liang
    604 654 3604
    Andy Subasinghe
    416 983 6601
    Quebec and the Atlantic Provinces
    Juan Salguero
    416 944 5794
    New York
    Chris Shaw
    212 827 7733
    One of the World's 50 Safest Banks (Global Finance, 2009-2017)