Agriculture Letter of Credit

An assurance to a creditor that you will pay as promised.

Convenience: Expand/Collapse

"You can avoid having to make cash advances or prepayments."
- An effective way to speed up transactions, build your relationships and eliminate cash advances or prepayments.

- A Letter of Credit or Letter of Guarantee may be required by an organization (e.g. a municipality, Saskatchewan Lotteries, Saskatchewan Liquor and Gaming; inventory suppliers and fuel suppliers) to ensure your business can meet its obligations to that organization.

- It is a written undertaking by Synergy Credit Union to pay money to a third party, conditional upon presentation of a certificate or other written demand for payment together with specified documents. In other words, it is your financial institution saying, in effect, "This business/operation is reputable and will keep its promise."

Flexible: Expand/Collapse

"You have options to suit your needs."
- A Standby Letter of Credit is used for tender bids, performance guarantees, repayment guarantees and unconditional promises to pay. They can be continuous but must be reviewed annually or for a maximum of one year.
* Costs apply

Advice: Expand/Collapse

"You can receive assistance if needed by our knowledgeable and accredited business advisors."
- Our knowledgeable and accredited business advisors can visit business or ag operations at your nearest Synergy branch or at your place of business if more convenient for you.
- If you require a Letter of Credit, you will need to discuss it in detail with your Synergy representative.

Who might benefit from this product/service?

A business or ag operation that wishes or is required to provide assurances they are capable of meeting the financial obligations of a transaction.

 

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