{"id":469,"date":"2024-06-29T13:08:40","date_gmt":"2024-06-29T13:08:40","guid":{"rendered":"https:\/\/grandcityinvestment.com\/?p=469"},"modified":"2024-10-04T15:55:11","modified_gmt":"2024-10-04T15:55:11","slug":"lease-standby-letter-of-credit-sblc-provider","status":"publish","type":"post","link":"https:\/\/grandcityinvestment.com\/en_US\/lease-standby-letter-of-credit-sblc-provider\/","title":{"rendered":"Standby Letter of Credit Meaning, Uses of SBLC & SBLC Process"},"content":{"rendered":"
Standby Letter of Credit (SBLC or SLOC)<\/span><\/span><\/strong><\/p>\n <\/b>A standby letter of credit (SBLC or SLOC) is a legal document that guarantees a bank’s commitment of payment to a seller in the event that the buyer\u2013or the bank’s client\u2013defaults on the agreement. Grand City Investment Limited is a Standby Letter of Credit provider, bg sblc provider, bank guarantee provider, Real SBLC Provider, bank instrument provider, Lease SBLC, SBLC Funding, SBLC Financing & BG SBLC Monetization, We are monetizers of bank instruments.<\/p>\n A standby letter of credit helps facilitate international trade between companies that don’t know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller certain to receive payment, a Standby Letter of Credit (SBLC or SLOC) doesn’t guarantee that the buyer will be happy with the goods. A standby letter of credit can also be abbreviated SBLC Also, a standby letter of credit is different from a bank guarantee.<\/p>\n A SLOC\/SBLC is most often sought by a business to help it obtain a contract. The contract is a “standby” agreement because the bank will have to pay only in a worst-case scenario. Although an SBLC guarantees payment to a seller, the agreement must be followed exactly. For example, a delay in shipping or a misspelling a company’s name can lead to the bank refusing to make the payment.<\/p>\n A Standby Letter of Credit is different from a Letter of Credit. An SBLC is paid when called on after conditions have not been fulfilled. However, a Letter of Credit is the guarantee of payment when certain specifications are met and documents received from the selling party.<\/p>\n The purpose of this letter is to establish a bank guarantee for the deal or transaction with a third party. For example, if an individual wishes to take a loan, but does not have a sufficient credit standing, the bank may then ask for a guarantee from another party (third party), and this is done in the form of a standby letter of credit that is issued by another bank. However, the said individual would then have to produce certain documents or evidence to support the non-performance of the buyer to obtain the payment through the SBLC.<\/p>\n The bank is obligated to make payment if the documents presented comply with the terms of contract. Though, the SBLC are considered very versatile and can be used with modifications to suit the interests and requirements of the buyers and sellers.<\/p>\n<\/div>\n An SBLC is frequently used as a safety mechanism for the beneficiary, in an attempt to hedge out risks associated with the trade. Simplistically, it is a guarantee of payment which will be issued by a bank on the behalf of a client. It is also perceived as a \u201cpayment of last resort\u201d due to the circumstances under which it is called upon.\u00a0The SBLC prevents contracts going unfulfilled if a business declares bankruptcy or cannot otherwise meet financial obligations.<\/p>\n Furthermore, the presence of an SBLC is usually seen as a sign of good faith as it provides proof of the buyer\u2019s credit quality and the ability to make payment. In order to set this up, a short underwriting duty is performed to ensure the credit quality of the party that is looking for a letter of credit. Once this has been performed, a notification is then sent to the bank of the party who requested the\u00a0Letter of Credit<\/a>\u00a0 (typically the seller).<\/p>\n In the case of a default, the counter-party may have part of the finance paid back by the issuing bank under an SBLC. Standby Letter of Credit\u2019s are used to promote confidence in companies because of this.<\/p>\n<\/div>\n The SLOC is often seen in contracts involving international trade, which tend to involve a large commitment of money and have added risks.<\/p>\n For the business that is presented with a SLOC, the greatest advantage is the potential ease of getting out of that worst-case scenario. If an agreement calls for payment within 30 days of delivery and the payment is not made, the seller can present the SLOC to the buyer’s bank for payment. Thus, the seller is guaranteed to be paid. Another advantage for the seller is that the SBLC reduces the risk of the production order being changed or canceled by the buyer.<\/p>\n An SBLC helps ensure that the buyer will receive the goods or service that’s outlined in the document. For example, if a contract calls for the construction of a building and the builder fails to deliver, the client presents the SLOC to the bank to be made whole. Another advantage when involved in global trade, a buyer has an increased certainty that the goods will be delivered from the seller.<\/p>\n Also, small businesses can have difficulty competing against bigger and better-known rivals. An SBLC can add credibility to its bid for a project and can often times help avoid an upfront payment to the seller.<\/p>\n Grand City Investment Limited are lc, bg and sblc providers, our sblc leasing fee is 4% leasing fee per year. If the bg \/ sblc is needed for more than one year, there will be an option of rolls and extensions where applicable. If the terms of the contract are fulfilled early, the customer can cancel the BG\/SLBC without incurring additional charges.<\/p>\n SBLC financing or bank guarantee funding or bg sblc monetization is the process of converting a bg bank guarantee or sblc into a legal tender.<\/p>\n Grand City Investment Limited is a bg sblc monetizers. We can arrange bg \/ sblc for your import and export transactions, credit enhancement as well as in your trade finance transactions. We can also discount or monetize a bg or sblc @ 75% LTV.<\/p>\n DESCRIPTION OF BUY\/PURCHASE BANK INSTRUMENT (BG\/SBLC\/SLOC)<\/b><\/p>\n 1. Instrument: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 BG (Bank Guarantee) Standby Letter of Credit (SBLC), cash-backed, 6. Consultation Fee: \u00a0 \u00a0 \u00a0\u00a0In total of 2%, which is to be split and paid to the consultants as follows:<\/p>\n 1% to \u2026(Seller\u2019s Mandate).., paid by the Seller\/Payer-1<\/p>\n 1% to \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026, paid by the Buyer\/Payer-2\u00a07. Delivery of instrument: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Bank-To-Bank\u00a0by SWIFT MT-760, as per the Schedule of Delivery of Buy-Sell Agreement<\/p>\n 8. Payment for instruments: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0By\u00a0SWIFT MT-103 wire\u00a0transfer BELOW IS THE DESCRIPTION OF LEASE BANK INSTRUMENTS (BG\/SBLC\/SLOC)<\/b><\/p>\n 1. Instrument: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0 Fully Cash Backed Bank Guarantee {BG} or StandBy Letter of Credit {SBLC} How to Obtain a Standby Letter of Credit <\/span><\/p>\n The standby letter of credit process is similar to that of\u00a0obtaining a commercial loan<\/a>, with a few key differences.<\/p>\n As with any business loan, you will need to provide proof of your creditworthiness to the bank. However, the SLOC approval process is much quicker, with letters often being issued within a week of all paperwork being submitted.<\/p>\n 12. No prepayment penalty \u00a0<\/span><\/p><\/blockquote>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Standby Letter of Credit (SBLC or SLOC) A standby letter of credit (SBLC or SLOC) is a legal document that guarantees a bank’s commitment of payment to a seller in the event that the buyer\u2013or the bank’s client\u2013defaults on the agreement. Grand City Investment Limited…<\/p>\n","protected":false},"author":1,"featured_media":360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[9,60,129,16,130,29,131,133,52,132],"class_list":["post-469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-standby-letter-of-credit-sblc","tag-bank-guarantee-provider","tag-bank-instrument-provider","tag-bg-sblc-provider","tag-lease-sblc","tag-real-sblc-provider","tag-sblc-financing","tag-sblc-funding","tag-sblc-process","tag-standby-letter-of-credit-provider","tag-uses-of-sblc"],"yoast_head":"\n<\/p>\n
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How a Standby Letter of Credit Works <\/span><\/h2>\n
What is the difference between SBLCs and LCs?<\/h3>\n
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Uses of SBLC<\/span><\/h3>\n
Types of Standby Letters of Credit (SBLC\/SLOC)<\/span><\/strong><\/h3>\n
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Advantages of a Standby Letter of Credit (SBLC \/ SLOC)<\/span><\/h3>\n
Cost of SBLC<\/span><\/h3>\n
What is BG SBLC funding, SBLC Financing & BG\/SBLC Monetization?\u00a0 <\/span><\/h3>\n
\n2. Total Face Value: \u00a0 \u00a0 \u00a0 \u00a0\u00a0 Eur\/USD 2 Million (Min) to Eur\/USD 500m (Max)
\n3. Issuing Bank: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 HSBC Hong Kong, Barclays Bank London, Deutsch Bank AG, Frankfurt \u00a0or any AA Rated Bank.
\n4. Term \/ Age: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0One (1) Year and One (1) day, Fresh Cut
\n5. Invoice Price: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a045% Net and 47% Gross of the face value of each BG\/SBLC to the Seller, including 2% consultancy fees as per IMFPA.<\/p>\n
\n9. Original Hard Copy: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0By bonded courier to Buyer\u2019s designated Depository Bank within Seven (7) bank working days after receipt of BG\/SBLC(s) settlement payment by SWIFT MT-103 into the Seller\u2019s account.<\/p>\n
\n2. Total Face Value: \u00a0 \u00a0 \u00a0 USD 2Million (Min) to USD 500m (Max)
\n3. Issuing Bank: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0 HSBC Hong Kong, Barclays Bank London or any prime Bank.
\n4. Age: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 One Year and \u00a0One Day (with rolls and extensions where applicable)
\n5. Leasing Price: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 4%\u00a0 (+ 2% brokers\u00a0commission where applicable) 2% broker commission applies to clients that were introduced by brokers
\n6. Delivery: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SWIFT MT-760
\n7. Payment: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 MT103\u00a0 Wire Transfer
\n8. Hard Copy: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument<\/p>\n\n
Below are a few of the things that make us unique and different from other companies.<\/b>
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\n13. Fast Approvals Closing
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\n<\/span>NOTICE TO BROKERS\/AGENTS\/COMPANY REPS:\u00a0<\/b> We value and appreciate brokers who are direct to their clients. New brokers are welcomed and compensated with between 1% to 2% commission on every deal. Here are a few of the many benefits of being a Grand City Investment broker: <\/span><\/p>\n<\/p>\n<\/div>\n
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\nTelephone: +852 8191 7151
\nSkype:\u00a0 dr.williams09787<\/b><\/span><\/div>\n<\/div>\n