A standby letter of credit (SBLC) is a legal document that guarantees a bank’s promise to pay to a seller/vendor should the buyer–defaults on the contract to pay the seller. International trade between corporations that don’t know each other and have different laws and regulations can benefit from a standby letter of credit. While the buyer is assured of receiving the goods and the seller certain to get payment, an SBLC doesn’t guarantee the buyer will be pleased with the goods. A standby letter of credit is often referred to as SBLC.
An SBLC is regularly sought after by businesses to help it acquire Credit. This “credit” is a “standby” agreement since the bank will have to honor payment only when there is a default. Even though an SBLC guarantees payment to a supplier, the agreement must be followed exactly. For example, an interruption or delay in delivery or a mistake in the spelling of a company’s name can result in the bank rejecting to make the payment. Bembry K Bembry, Lead Financial Advisor will assist you with procurement of standby letters of credit, allowing transactions to happen that otherwise might be considered too risky by the receiving entity.
The SBLC is frequently seen in contracts relating to international trade that usually involve large funding but with higher risks.
A benefit for a business, presented with an SBLC is the potential ease of evading the worst-case scenario. For example, assuming a contract demands payment within 30 days of delivery and the buyer is unable to make payment, the seller can present the SBLC to the buyer’s bank and the bank will honor and pay the seller. Thus, the seller’s payment is guaranteed. Another advantage of SBLC is the reduced risk of a production order being changed or canceled by the buyer.
Why you should choose Russell Walcott Lead Financial Advisor – RDW & K Advisors to obtain Standby Letter of Credit (SBLC):
Expert Advisor – Available round the clock no matter your time zone. We will always respond to your calls and emails within 1 hour.
Tailored Advice – Every customer is unique we pay attention to each customer, tailoring our professional advice around their needs.
72 Hour Delivery – our average delivery timeframe for Standby Letter of Credit (SBLC) / Bank Guarantee (BG) is 72 hours. This means SBLC is delivered from issuer bank to buyer bank within 3 business days from the time of forms/document endowment and payments being completed.
Currency – We will issue a Standby Letter of Credit (SBLC) / Bank Guarantee (BG) in almost any currency except Yuan (¥).
Lower Fees – Our fees for Standby Letter of Credit (SBLC) / Bank Guarantee (BG) are very competitive and more cost-efficient than other providers and banks.
Fewer Constrictions – Our compulsory control clauses for a Standby Letter of Credit (SBLC) / Bank Guarantee (BG) are much relaxed compared to others.
Top Rated Bank – Our SBLC/BG is issued from top-rated banks like Barclays Bank, HSBC bank. All our transactions are via bank to bank SWIFT ensuring all SBLC/BG are successfully delivered for our customers.
Customer Deposits are 100% secured with 2 Levels of protection.
We value customer relationship so much that ALL CUSTOMER deposits for an SBLC/BG receive 2 Levels of security which are:
• Corporate Refund Undertaking
• Non Performance Penalty