The AltFunds Global

Courtesy Deposits vs. Standby Letters of Credit


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Courtesy deposits vs. standby letters of credit (SBLCs): what’s the difference—and which one makes sense for raising capital?
In this episode, we break down these two very different tools for project financing and international deals.

  • Courtesy deposits: informal collateral to win trust

  • SBLCs: formal guarantees banks issue on your behalf

  • Risk trade-offs—your cash vs. the bank’s reputation

  • Why courtesy deposits are gaining popularity with smaller banks

  • How startups and high-growth companies use both to secure funding

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The AltFunds GlobalBy Taimour Zaman