At Letter of Credit Consultancy Services, we stand by your side for all your standby letter of credit transactions.
Standby letters of credit (SBLCs)—are financial instruments that function similarly to bank guarantees.
By nature, standby letters of credit differ from commercial letters of credit in several key ways:
✔Commercial letters of credit serve as the primary payment method, whereas standby letters of credit act as a secondary payment guarantee.
✔Commercial letters of credit are highly focused on shipping documents and the physical export of goods, while standby letters of credit do not require shipment documents, a latest shipment date, or specific references to shipment.
✔Commercial letters of credit are exclusively governed by UCP 600, whereas standby letters of credit can be issued under either UCP 600 or ISP 98.
✔The primary purpose of a commercial letter of credit is to facilitate direct payment to the exporter, while a standby letter of credit ensures that the issuing bank only makes a payment if the importer fails to fulfill their payment obligation through another method.
Scope of Our Standby Letter of Credit Consultancy Services
✔ Review of standby letters of credit for export transactions to identify potential risks and provide detailed feedback to clients.
✔ Guidance on standby letters of credit for import transactions to ensure a secure and seamless process.
✔ Operational support for standby letters of credit used in other financial transactions.
✔ Consultation on choosing between standby letters of credit and bank guarantees, providing expert advice based on transaction-specific needs.
With our expertise, we help mitigate risks, prevent costly mistakes, and ensure smooth financial transactions for your standby letters of credit.