{"id":609,"date":"2024-10-04T14:32:03","date_gmt":"2024-10-04T14:32:03","guid":{"rendered":"https:\/\/grandcityinvestment.com\/?p=609"},"modified":"2024-10-11T02:54:28","modified_gmt":"2024-10-11T02:54:28","slug":"differences-between-sblc-and-commercial-letters-of-credit","status":"publish","type":"post","link":"https:\/\/grandcityinvestment.com\/en_US\/differences-between-sblc-and-commercial-letters-of-credit\/","title":{"rendered":"Differences Between SBLC and Commercial Letters of Credit"},"content":{"rendered":"
The Differences Between Standby Letters of Credit and Commercial Letters of Credit?<\/h1>\n
Standby letters of credit and commercial letters of credit are two main documentary credit types used in international trade transactions.<\/p>\n
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A standby letter of credit is a bank\u2019s undertaking of fulfilling the applicant\u2019s obligations.<\/p>\n
In case, the applicant can\u2019t fulfill contractual obligations against the beneficiary of the standby letter of credit, then the beneficiary can apply to the issuing bank for full compensation.<\/p>\n
A commercial letter of credit means any arrangement, however, named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation.<\/p>\n
Commercial letters of credit are mainly used as a primary payment method in export and import of the tangible goods in international trade.<\/p>\n