Standby Letters Of Credit
Trusted Standby Letters of Credit Provider
Express Trade Finance is a global leader in providing Standby Letters of Credit (SBLCs). Step into the transformative world of SBLCs, designed to be your financial ally in international trade, offering unmatched security, flexibility, and peace of mind.
An SBLC serves as a powerful guarantee of payment to a beneficiary if the client fails to meet their contractual obligations. This instrument is widely used in international trade and business transactions, assuring sellers that they will receive payment even if the buyer defaults.
SBLCs act as a robust form of security, instilling confidence in both parties involved. Unlike traditional letters of credit used primarily for payment, SBLCs serve as a backup, activated only if specific conditions, such as non-payment or non-performance, are not met.
Explore the versatility of Standby Letters of Credit with us. Our solutions cater to various industries, providing financial security and flexibility for performance bonds, trade finance, and project financing. Dive into a world where your business transactions are safeguarded and your financial interests protected.
Understanding the Benefits and Importance of SBLC in International Trading
Benefits of SBLC in International Trading
A Standby Letter of Credit (SBLC) offers a robust financial safety net, ensuring payment security and enhancing trust between trading partners. It provides assurance to sellers that they will receive payment even if buyers default, making it an invaluable tool in high-risk transactions.
When is an SBLC Important?
SBLCs are crucial in international trading when dealing with unfamiliar foreign parties or in high-risk transactions. They ensure that sellers receive payment and buyers fulfill their obligations, facilitating smoother and more secure global trade operations.
SBLC Issuance Procedure- Step By Step
SBLC Issuance Procedure:
1. In order to finalizing the draft , we need following documents/ information.
i. Filled-in Application form/ Proforma Invoice or Sales Contract
ii. Company Trade License
iii. Passport copy of the owner and shareholders
iv. Last three months bank statement
v. One-year audited financials
vi. Shareholding List
2. After acquiring all the above documents/information, we will assist the client in selection of the issuing bank/financial institution and assist in finalizing the draft for client’s review.
3. Upon receiving the draft copy of the instrument, client must thoroughly review the draft for any corrections, additions or removal of information. Should there be any amendments, we can assist in amendment of the draft accordingly to match clients’ preferences. Once the draft is approved by all the related parties, client will need to send us a copy of the draft with authorized signatory’ sign and company stamp on the draft as client’s approval along with an email confirming the same.
4. We will raise the invoice for the charges agreed and client will make the remittance against the invoice.
5.Only after we receive the payment for the raised invoice, we will assist on following with the issuing bank/financial institution consulted and provide assistance in issuing the instrument through swift/courier within 7 working days depending the issuing bank/financial institution policy.
6. Simultaneously we will assist the client in receiving the issued copy through email for reference and record keeping.
Note: The issuing charges would depend on the amount of the SBLC required, the type of the SBLC, the issuing bank selected for issuance and the beneficiary bank to which it is to delivered.