Skip to main content
TD Securities
 
 
 
 

Guarantees & Standby Letters of Credit

A 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.

 

Features

  • 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 Bank) 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.
  • Guarantee and Standby Letters of Credit applications can be completed and transmitted to TD Bank electronically via TDfacilitrade.com.

Benefits

  • 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.

Requirements

  • The client must have a credit facility in place for a Guarantee/Standby Letter of Credit to be issued.

TDfacilitrade.com requires initial set up by a Global Trade Finance Specialist.

    December 18, 2017
    Login to

    Key Contacts

    Stephen Barr
    Head of Origination, Trade Finance
    416 308 9434Click to mail
    Email us
    Click to mail
    British Columbia
    604 654 3358
    Alberta, Saskatchewan and Manitoba
    604 654 3604
    Ontario
    416 983 6601
    Quebec and the Atlantic Provinces
    416 944 5794
    One of the World's 50 Safest Banks (Global Finance, 2009-2017)