A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used as “payment of last resort” should the client fail to fulfil a contractual commitment with a third party. It is created as a sign of good faith in business transaction, and is the proof of a buyer’s credit quality and repayment ability.
SBLC is typically in force for about one year, allowing for enough time for payment to be made through standard contractual guideline. It is often used in international trade transaction, such as the purchase of goods from another country. The seller will ask for letter of credit, which can be cashed on demand if the buyer fail to make payment by the date specified in the contract. The cost to obtain a standby letter of credit is typically 1-8% of the face amount annually, but the letter can be cancelled as soon as the terms of the contract have been met by the purchaser or borrower.
WE OFFER ASSISTANCE:
We may assist to obtain SBLC that meets the following specification of instruments:
Face Value: USD 10,000,000 onwards
Issuing Bank: Premium Banks subject to our list
Term: 1 Year (extendable)
Delivery: SWIFT or paper form
Confirmation: Verification by SWIFT
GENERAL PROCEDURE TO APPLY FOR A BANK INSTRUMENT
- The applicant sends his application for review.
- Once approved an agreement is entered into by InterBankBrokers and the client.
- Upon signing of the agreement, the applicant will directly remit the fund with the bank that issues the instrument.
- Upon receipt of the fees, bank will open the instrument and transmit by its SWIFT System.
- The bank instrument is issued and delivered to the beneficiary.
- The escrow agent or the issuer respectively disposes of the fee in accordance to the Agreement.
Validity 1 year cost: 8%