Trade Financing & Investment Banking
STANDBY LETTER OF CREDIT (SBLC/BG)
The SBLC/BG issued by the Investment Bank / Financial Institution to pay a Beneficiary on a client’s behalf in a situation where the applicant defaults, is known as a Standby Letter of Credit. It is a flexible tool suitable for a wide range of secure payments, most commonly used for International Trade to provide assurance.
Types of Standby Letter of Credit:
- A Direct-Pay Standby Performance Standby
- A Bid-Bond or Tender-Bond Standby
- An Advance-Payment Standby, commercial standby
- A Financial Standby, Counter Standby
DLC/AT SIGHT LC
A Documentary Letter of Credit is a Guarantee that provides assurance to the Beneficiary that he will get the payment which has been mentioned in the Documentary Letter of Credit. This is commonly used for International Transactions where both the buyer and the supplier have a new relationship and operate from different countries, provided the compliant presentation is under the documentary Letter of Credit.
ADVANCED PAYMENT GUARANTEE
Key Responsibilities:
- 1. The Principal: Typically, the Supplier or Contractor who receives the Advance Payment.
- 2. The Beneficiary: The party providing the Advance Payment and seeking assurance that their Payment will be Protected.
- 3. The Guarantor: A Financial Institution that issues the Guarantee, committing to repay the Advance Payment to the Beneficiary if the Principal fails to fulfil the contract, especially in Construction & Manufacturing.
CREDIT INSURANCE FACILITY
Credit Insurance is a vital tool in managing Financial Risks associated with Trade Credit, providing protection to businesses against the non-payment of trade debts due to insolvency, bankruptcy, or protracted default of their customers. We offer essential security in trade financing and investment banking environments.