Standby Letter of Credit Procedure
Below are the step by step procedures to obtain SBLC from BWT :
- Buyer submits requirement in terms of pro-forma invoice or buy and sell agreement of their trade deal to BWT.
- BWT carries due diligence of their commercial transaction between buyer & seller and will inform the concerned parties about the approval or rejection of their SBLC application.
- Once the SBLC application is approved then the buyer will provide certain documents and pay the SBLC issuance fee charges.
- BWT will immediately act and will provide from their bank account with European Bank the required SBLC on behalf of buyer & in favor of their supplier to conclude their trade deal.
Standby Letter of Credit Video
For visual understanding watch the SBLC procedure on video;
Standby Letter of Credit Information
The Standby LC or SBLC (MT-760) is a Standby payment guarantee issued by a bank on behalf of their client that is used as “payment of last resort” if the client fails to fulfill a contractual commitment with a third party.
Standby Letter of Credit is created as a sign of good faith in business transactions and are proof of a buyer’s credit quality and repayment abilities.
Standby Letter Of Credit is often used in International trade transactions, such as the purchase of goods from locally and internationally. Standby Letter of Credit can be used as Collateral for Credit Enhancement. It is ideal for companies planning to expand their business and do not want to give up equity of their company. This improves company’s cash flow as it allows the company to use their funds for alternate purposes before payments become due.
Our experts are structuring Standby Letter of Credit to meet your business needs while helping to protect your interests to the extent in every possible circumstance.
Bronze Wing Trading L.L.C has been providing Standby Letter of Credit on behalf of their client/buyer to fulfill a contractual commitment towards the supplier/ beneficiary.