What is an SBLC [ Standby Letter Of Credit]?




What is an SBLC [ Standby Letter Of Credit]?

A SBLC is simply a document that guarantees a bank's commitment of payment to a seller in case that the buyer or the bank's client defaults on the agreement. A standby letter of credit is a way of securing international trades between companies that don't trust each other and have different laws and regulations. An SBLC helps ensure that the buyer will receive the goods or service that's outlined in the document and the seller will get paid. For example, if a contract calls for the construction of a building and the builder fails to deliver, the client presents the SBLC to the bank to be made whole.

 

 

Credit ;

Rudolf Umert [SBLC Broker ]

RainerUmert55@gmail.com

rainer@sblcbrokers.com

www.sblcbrokers.com


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