At Unicapital we facilitate two types of letters of credit: Commercial (commonly known as documentary) and Standby. We are able to facilitate issuance of unsecured letters of credit, which do not have to tie up your cash or collateral to get a letter of credit.
A Standby letter of credit is a financial document that ensures your client’s obligation to act in accordance with the terms of an agreed upon contract. It can only be used as collateral for payment in the event of default. It is also used as performance bond or for repayment of money borrowed or advanced.