1 / 8

What do you mean by “Standby Letter of Credit”

What is a “Standby Letter of Credit” SBLC – It is basically a document that is issued by the bank that saves you in your hard time.

Bankinstrument
Download Presentation

What do you mean by “Standby Letter of Credit”

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What is a “Standby Letter of Credit” & its Various Types

  2. When you are associated with any huge investments, it is imperative for you to have a backup design because anything can turn out badly with the fund. • Here The Standby letter of credit can give you assurance whether you are obtaining a finished administration or delivery physical merchandise. Now let’s study deeply about SBLC. • So what is a “Standby Letter of Credit” SBLC – It is basically a document that is issued by the bank that saves you in your hard time. It is a type of guarantee issued from the bank saying they will be paying the beneficiary amount if anything goes wrong with your finances. • The SLBC helps you to pay the beneficiary amount when you are unable to make the payment on time, or unable to complete the project on time.

  3. These can be used both in domestic trades as well as international trades What are the kinds of the SBLC? There is a considerable measure of kinds of SBLC. These are – Performance Standby– A performance letter of credit is a document that is used in a situation where your business is buying from a supplier. It gives a commitment to perform not to pay the cash for benefit. If you can't able to finish the assignment, the beneficiary can then invoke the terms of the SLOC and receive due compensation. Advance Payment Standby– The advance payment standby allows the buyer to make a draw under the advance payment standby L/C

  4. Counter standby– It is mostly issued by the bank of one country, requesting the bank of another country to issue standby to their local undertakings. It is only one type of SBLC that supports the issue of another country. • Insurance Standby– This standby fundamentally is insurance or a reinsurance commitment to the candidate. Bank instruments are specialized in providing financial instruments such as SBLC, BG, MTN, POF, Monetization, Leasing, Selling and Paymaster services.

  5. Most of us are sometimes concerned with private shopping. And online shopping websites offers you a great platform to do so. Disadvantages of online shopping • You cannot feel or touch items during online shopping whereas in local stores or malls you can see many things at a glance and buy after you feel or touch the product. • In most of the cases online shopping website fails to offer warranties and some sort of guarantees.

More Related