The Standby Letter of Credit Discount is an irrevocable documentary commitment, separate from the sales contract, issued by the Bank to a third-party beneficiary and promising to pay on behalf of the originator. a specific sum of money against the delivery of documents satisfying the terms and conditions of the SBLC.

A Standby Letter of Credit Discount is a Payment guarantee generally issued by a bank “the issuing bank” on behalf of a client “the applicant” securing payment to a third party “the beneficiary” in the event the buyer fails to fulfill a contractual commitment the issuing bank will release payment to the seller. When buyers issue Bank Guarantees in favor of seller they demonstrate financial capability to fulfill a contractual obligation. BG also provides payment security to the supplier as he/she prepared to deliver the product to the delivery port.

The proposed Bank Guarantee facilitates international transactions, as collateral and credit enhancement. The use of Bank Guarantees provides an advantage to buyers or traders who do not want to make down payment to the seller.

• Payment Guarantee:

It can be issued under Buyer’s instruction in favor of the Seller. Provides payment obligation for the Buyer under a proposed contract.

• Performance Bond:

Issued under the Seller’s instructions in favor of the Buyer as a guarantee of proper fulfillment of contract obligations by the Seller.

The Standby Letter of Credit Discount we provide is designed to protect the buyer’s commercial interests by eliminating the need to prepay for products or services. It will also discard the need to provide collateral to your bank. Our Bank Guarantee will help minimize your risk for SBLC funding and support your cash flow. It is important to note that the proposed BG/SBLC cannot be monetized or used in programs such as PPP or loan. For more information about our Trade Finance Program please feel free to contact us.

Our BG/SBLC Financing can help your trade funded, by providing you with yearly renewable leased bank instruments. We work directly with providers of these instruments. Financing for your small business isn’t always easy to come by—but it’s important to look down every avenue of opportunity; you might not be aware of one of the most powerful financing tools out there. Standby letters of credit can help your business in tough contractual and financial situations, making people more likely to sign contracts and do business with you.