Being the direct SBLC Provider, we can support imports and exports by providing Standby Letter of Credit – SBLC MT760 on behalf of importer and in favor of the exporter to conclude their trade deals.
To avail SBLC from us, follow the simple process given below:
A Standby Letter of Credit (SBLC) is a written undertaking issued by a bank on behalf of its client. SBLC guarantees the bank’s commitment of payment to the seller, in the event of the buyer defaults. Standby LC is a “payment of last resort”. That means the bank fulfills the payment obligations, in case, if the client fails to oblige with the contract terms.
Standby Letters of Credit proves the buyer’s credit worth and payment strength. Further, it provides complete security of not making any payment loss. Also, it helps to facilitate global trade between companies that don’t know each other and have different rules & regulations. Therefore, it is a preferable financial instrument used by traders and is most reliable in business trade dealings.
Moreover, MT760 can also be used as Collateral for Credit Enhancement. Thus, it is ideal for traders who plan to expand their business, without giving up their equity. Having SBLC improves the company’s cash flow & seen as a sign of good faith. Further, SBLC allows traders to use their cash capital for other purposes before payments become due.
When two parties (buyer & seller) agree to use Standby LC as their payment term to conclude their trade deal. Then, the buyer has to open Standby LC in favor of the supplier from their bank. By issuing Standby LC in favor of the supplier & on behalf of the buyer, the bank guarantees the payment – even if the company closes down, declares bankruptcy, or unable to pay for goods and services provided.
For instance, if the buyer defaults, the seller has to present all documents mentioned in the issued SBLC to their bank. The bank verifies all the documents, and if it complies with the terms, they will pay the seller’s bank the amount due.
The main advantage of having SBLC is the potential ease of getting out of that worst scenario. E.g. If a contract calls for payment within 60 days of delivery and the payment not made, the seller can present the SBLC to the buyer’s bank for payment. Thus, the seller is guaranteed to be paid. And also, SBLC reduces the risk of the production order being changed or canceled by the buyer.
SBLC MT760 provides a lot of benefits for both importers and exporters which we have listed below:-
The Applicant (buyer) is the one who requests their bank to issue SBLC on behalf of their supplier.
The bank that issues the SBLC MT760 on behalf of their client.
SBLC recipient or the supplier who receives the SBLC in their favor.
The advising bank is, in fact, an SBLC recipient’s bank. This is the bank where the beneficiary will receive their Standby Letters of Credit.
Standby LC can be transferable subject to its terms. This is a question that most of our clients ask before applying for the MT760. Some of the financial instruments like cheque, promissory note, etc. can transferrable in good faith. Likewise, MT760 can be transferred in favor of a second SBLC recipient. However, it requires a written request by the first SBLC recipient. And, at the same time, the consent of the issuing bank.
Generally, the applicant (buyer) borne the cost for the issuance of SBLC. Mainly, the cost includes – bank commission, processing fee, and transmission fee. All these charges paid by the importer at their bank as per the agreed contract between the buyer & the seller. To get more details on our tariff, write to us via email
Bronze Wing Trading L.L.C. has been offering SBLC MT760 from European Banks on behalf of buyers to fulfill their deal towards the suppliers.
Being an SBLC provider, our experts will frame the SBLC MT760 as per your requirement & will help you to conclude the deal within 48 working hours.
To avail Standby Letter of Credit from rated banks, submit your requirements to us! We will get back to you ASAP! Contact Us now!