Scribd
Upload
296 views

Standby Letter of Credit

A standby letter of credit (SBLC) is a guarantee in writing from a bank to a third party that a payment owed to them will be made on demand. Only the beneficiary, such as a customer or supplier, can demand payment. An SBLC allows a business to take advantage of opportunities without tying up cash flow and can be used for building contracts, progress payments, future accounts to third parties, and property leases.

Uploaded by

Sudershan Thaiba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
296 views

Standby Letter of Credit

A standby letter of credit (SBLC) is a guarantee in writing from a bank to a third party that a payment owed to them will be made on demand. Only the beneficiary, such as a customer or supplier, can demand payment. An SBLC allows a business to take advantage of opportunities without tying up cash flow and can be used for building contracts, progress payments, future accounts to third parties, and property leases.

Uploaded by

Sudershan Thaiba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 14

Standby Letter

of Credit (SBLC)
 A standby letter of credit (sblc) is a
surety in writing that we give to a third
party to guarantee that a payment you
owe them will be made on demand.

 Only the beneficiary your customer or


supplier can demand the payment.

 You could use a standby letter of credit


(sblc) to take advantage of business
opportunities like large contracts, new
premises or equipment without tying up
your cash flow.
There’s no minimum limit, and
the maximum limit is subject to
approval. If you’re eligible, your
guarantee will be for a
nominated amount.
 1. Building contracts: Use instead of
retention money (also known as
performance bonds).

 2. Progress payments: Suitable for


construction projects or large scale
plant and equipment purchases.

 3. Payment of future accounts to a


third party: For example, your
 4. Property leases: Secure a
tenant’s obligations to a landlord under a
lease agreement.

 The account is in the client’s name, and


earns interest. The person chooses the
bank among financial institutions that are
subject to the law on banks.

 Standby letter of credit (sblc) given


directly to the person must be rapidly
deposited in a bank account by him the
 In return, he will be given a document
attesting to the grantee, a copy of
which should be given to the person.

 The security of access to funds


 Presentation of the standby letter of
credit (sblc) document are very much
required for the processing of things.
 Sever days are minimum required for
new guarantee documents, so its easy
 Commonly used in commercial rental
agreements.
 The concept of standby letter
of credit (sblc) covers a wide
range of support available
from company with the Bank
committing its signature to
third parties on your behalf.

 This
guarantee can be used
by any businesses either big
The most commonly used
bank guarantees are:
 1. Completion guarantee
 2. Rental guarantee
 3. Payment guarantee
 4. Tender guarantee
 5. Advance payment security
 6. Performance guarantee
 7. Construction lien holdbacks
 8. Performance bonds
Features
 Use your assets or cash as
security

 Availablefor individual as well as


for company. So, you can start
your search now for your
preferences.

 Faster access to standby letter of


credit (sblc) (from $5K-$250K)
 Call
us, Visit us or send us
query.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy