A Standby Letter of Credit is often used to provide security for an obligation, such as a lease or other long-term contract. Landlords may require a deposit or a standby letter of credit that guarantees payment from the issuing bank if a tenant falls in arrears. Often, large contracts may require at least one of the parties to have a standby letter of credit in place for the transaction to move forward. Basically, a standby letter of credit guarantees the beneficiary that it will be paid from a creditworthy bank if it’s unable to get paid by its counterparty in a transaction.
Express provides standby letters of credit, allowing transactions to happen that otherwise might be considered too risky by the receiving entity.
Express provides standby letters of credit, allowing transactions to happen that otherwise might be considered too risky by the receiving entity.
Standby Letter of Credit (SBLC) Benefits
A letter of credit minimizes risk, maximizes control, and optimizes profits associated with international trade by making transactions simpler, smoother and safer for all sides.
Buyer Benefits
You may not have the necessary collateral requirements or relationship with the bank to get a letter of credit—but we do.
You don’t have to leave deposits with your suppliers, since your letter of credit will be opened for the full amount of the transaction—so your cash is not tied up or at risk while your supplier can often borrow against a letter of credit.
You may significantly increase your ability to do business with companies by bolstering your financial position with your suppliers.
You can build safeguards into the letter of credit, including inspection of the goods and quality control, and set production and delivery times. This gives you more quality control over your goods.
Seller Benefits
Payment is assured as long as you comply with the terms and conditions of the letter of credit.
The credit risk is transferred from the buyer to the issuing bank, which is obligated to pay even if the buyer goes bankrupt.
You have easier access to financing and are able to transfer all or part of the letter of credit to another party, e.g., to purchase raw materials.
Collection time is minimized, as the letter of credit accelerates payment of receivables, and foreign exchange risk is eliminated when it is issued in the currency of your country.
6 Reasons to use Siam Kredit to deliver Letter of Credit (LC) for you
72 Hours Delivery
Deliver Standby Letter of Credit (SBLC) within 72 hours with documentation and payments.
Any Country
We will issue a Standby Letter of Credit (SBLC) for the import/export of goods from ANY country.
Any Country
We will issue a Standby Letter of Credit (SBLC) in almost any currency
Lower Fees
Our fees for issuing Standby Letter of Credit (SBLC) are more cost-effective compare to others.
Less Restrictive
Our required control clauses for a Standby Letter of Credit (SBLC) are much easier.
Deposits Protection
ALL CLIENT DEPOSITS for Standby Letter of Credit (SBLC) receive 2 Tiers of Protection.
Standby Letter of Credit (SBLC) Processing Steps
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Step 1: Agreement
Complete and return the Standby Letter of Credit (SBLC) Application and Pay the Application fee.
Step 2: Issuing of Draft
We will then create a draft of the Standby Letter of Credit (SBLC) for you and your supplier to review.
Step 3: Draft Review and Opening Payment.
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Step 4: Issuance
Typically, the bank will issue the Standby Letter of Credit (SBLC) within 48 hours of release. Upon issuance, we email you a copy of the SBLC as transmitted by SWIFT, including the SBLC reference number. Your supplier’s bank should receive and confirm the Standby Letter of Credit (SBLC) transmission shortly thereafter.
Step 5: Presentation of Documents
Once the supplier has prepared and loaded the goods for transit, they must present the specified documents for that shipment to their bank. Their bank will transmit these documents to our bank. We will email you copies of the presentation (and all documents submitted by the supplier) for your review and approval.
Step 5: Presentation of Documents
Once the supplier has prepared and loaded the goods for transit, they must present the specified documents for that shipment to their bank. Their bank will transmit these documents to our bank. We will email you copies of the presentation (and all documents submitted by the supplier) for your review and approval.
Let’s Make Things Happen
We provide your business with a flexible credits solution that is tailored to fit your size, sector and business ambitions.
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AZUP Global Trade one of the leading trade financeWe are provider in Singapore, Hong Kong, United Kingdom, London, Dubai, UAE, and Thailand. We are registered in Singapore, Hong Kong and Thailand with the Department of Economic and Chamber of Commerce.Being in this industry for over 40 years, we provide the best trade financial solution for our clients globally with a client retention ratio of 90%. Further, the clients we deal with include traders, manufacturers, contractor. Whether you’re a trader who import/export goods or you’re traders, we will always standby with you!!Moreover, our experts can walk with you and support you from the moment of an initial session to until the deal is closed. Further, we also assure clients that we can assist to conclude their deal on time without facing any risks. We Are a Competent and Reliable And Business Partner!!
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