Standby Letters of Credit

Standby letters of credit are very much alike to documentary letters of credit, their main difference is that unlike DLC’s, they only become operative in case the applicant defaults, then the beneficiary in whose favour the SBLC was issued, can draw on the SBLC and demand payment.

A Standby Letter of Credit is a payment guarantee issued by a bank or financial institution that can be used for a wide range of commercial and financial transactions, local or international.

Benefits of SBLC’s

Ready to get started? Complete our Letter of Credit Application.