Standby letters of credit are very much alike 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 that can be used for a wide range of commercial and financial transactions, local or international. It is a special form of letter of credit and in its essence is closer to a bank guarantee, the purpose of which is to cover the possible risk of non-fulfilment of obligations.

Express Trade Finance offers standby letters of credit which are considered as a suitable product for securing a wide range of payment scenarios.