Standby Letters of Credit (SLOC)*
A financing tool to help small businesses do business
Do you need a Standby Letter of Credit?
Standby Letters of Credit may help businesses navigate through difficult financial and contractual issues by assuring other parties or vendors of your trustworthiness, payment ability and credit quality. When Hyperion Bank issues a SLOC, we guarantee that we will fulfill your contractual/payment obligations in the event your business cannot.
Sometimes considered as "a loan of last resort," a SLOC is a type of commercial financing that can be beneficial to small businesses when underwriting guidelines make it difficult for them to obtain other types of business loans. As a bank guarantee of payment, the SLOC is never intended to be used--but if a business fails or declares bankruptcy, or is unable to pay for delivered goods and services, the SLOC will provide for funds that are owed to contractors, vendors, and service providers.
Our experienced commercial lenders can explain the underwriting process and fees associated with a Standby Letter of Credit, and help you understand whether a SLOC is a good option for your business.
To learn more about Standby Letters of Credit, please call 215.789.4200, email firstname.lastname@example.org or visit our office for personal assistance.
*Offer of credit is subject to credit approval.