Merchant Trade Corp

Assurance of payment is offered by a financial institution for a customer is known as 'last resort of payment' if the customer is unable to fulfill an agreement with a third party. The non-performing letter of credit is commonly known as standby letters of credit.   In this article, you will explore the non-performing letter of credit. So let's start.  The financial institution is liable for delivering the standby letter of credit also called a non-performing letter of credit. This will ensure the credit quality of the individual. The concerning authority will send a notice to the bank of the relevant party looking for the letter of credit. Benefits of Non-performing letter of credit Here are some of the reason why non -performing a letter of credit is beneficial: It will assist you to reach potential customers: establishing a new business connection is very difficult. It is really hard to locate a new buyer who is ready to make any prior payment to another person. By havin