Letters of Guarantee

You may need a Letter of Guarantee when you’re entering a relationship with another business.

It’s sort of like a third-party endorsement – we’ll give the third party a letter saying that we’ll provide them with a specific amount of money on your behalf if it’s required.

In most cases that never happens, and because we’re not actually lending you any money (we’re just saying we would if you wanted us to), you don’t have to pay any interest. However, like you, we wouldn’t be in business very long if we started giving things like that away for free. So there’s a charge for the initial analysis of your business, the approval and an annual fee in accordance with the Commercial Fees Schedule for as long as our Guarantee is in effect.