We already know what a Letter of Credit is. It is another naming for the documentary credit that was analyzed in the preceding articles. The key to understand this payment technique is therefore the word Standby. In the Cambridge dictionary, it reads about that word:<\/p>\n
- \n
- Something that is always ready for use, especially if a regular one fails.<\/li>\n
- When a person or a thing is on standby, they are ready to be used if necessary<\/li>\n<\/ul>\n
A Standby Letter of Credit is therefore a Letter of Credit that is ready to be used if required. Now let\u2019s consider its definition.<\/p>\n
What is a Standby Letter of Credit (SBLC)?<\/h2>\n
The Standby Letter of Credit (SBLC) is\u00a0a guarantee<\/em>\u00a0issued by the importer\u2019s bank, in favor of the exporter, for an amount agreed at the signing of the commercial contract. It provides a guarantee to the exporter that, if due to any circumstances, the importer is unable to pay, then the bank will make the payment.<\/p>\n
The Standby Letter of Credit is used as an insurance against the risk of non-payment. It is intended for preventing contracts from going unfulfilled in case the importer declares bankruptcy or is unable to pay for goods or services provided. Like an insurance, a Standby Letter of Credit is not put into play when everything goes well. However when a bank issues a SBLC on the request of a business,\u00a0 it proves that business\u2019 credit quality and repayment abilities to some extent.<\/p>\n
The Standby Letter of Credit was created in the United States to circumvent US banking legislation that prohibits banks from issuing guarantees and surety bonds. Only insurance companies or similar companies are legally allowed to issue them in the USA. The US banking system has circumvented this prohibition by issuing guarantees requiring the submission of certain documents to make them work.<\/p>\n
There are two types of Standby Letters of Credit: Performance SBLC and Financial SBLC.<\/p>\n
- \n
- \n
A Performance Standby Letter of Credit is issued to ensure that nonfinancial contractual obligations are performed in a timely and satisfactory manner. These obligations can be related to quality of work, amount of work, delivery time, asn. In case they are not met, the bank will pay the beneficiary in full.<\/p>\n<\/li>\n<\/ul>\n
- \n
- \n
A Financial Standby Letter of Credit<\/a>, on the other hand, is issued to ensure that financial contractual obligations are fulfilled. That means the importer pays on time provided he has received all the goods and\/or services from the exporter, the beneficiary of the SBLC. But a Financial SBLC can also be in favor of the exporter\u2019s bank. Standby Letters of Credit are financial most of the time.<\/p>\n<\/li>\n<\/ul>\n
The standby letter of credit is often preferred over a documentary credit because it presents some advantages for both parties:<\/p>\n
- \n
- The administrative formality is simple and not very constraining<\/li>\n
- It allows fast and direct shipping of documents to the buyer without going through the banks<\/li>\n
- It is adapted to all incoterms including those of the D group related to the deliveries. We will get back to Incoterms in the future.<\/li>\n
- If it is not enforced, its cost is less than that of a Documentar Credit<\/li>\n
- It can come to fruition in a few hours<\/li>\n
- \n
etc.<\/p>\n<\/li>\n<\/ul>\n
We will now consider how the issuance and notification of the standby letter of credit work.\u00a0The diagram below shows the steps involved in issuing and notifying a Standby Letter of Credit. The parties involved in a SBLC are the same as the ones involved in a\u00a0documentary credit<\/a>. I am sure you recognize the Four Corner Model :-), our main tool to analyze payments instruments and techniques.<\/p>\n
\n![\"Standby](\"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png\")
Standby Letter of Credit, Standby Letter of Credit provider, Standby Letter of Credit meaning, Standby Letter of Credit types<\/strong><\/p><\/div>\n
Issuing and Notification of a Standby Letter of Credit<\/strong><\/p>\n<\/div>\n
We consider each step in the following:<\/p>\n
1. The signature of the contract between the exporter and the importer<\/h3>\n
This step is very important for the success of the whole operation. The two parties agree the terms of the transaction in a contract: the goods, transport and shipping arrangements, delivery times, documents to be provided by the buyer, the payment guarantee (In this case the standby letter of credit), the payment instrument, what to do in case of dispute (Non payment, problems on the goods, etc.)..<\/p>\n
Companies are strongly advised to seek the support of international trade professionals to avoid mistakes. Even if forms exist, it is not always easy to fill them out and the omission of an important point can put the whole operation in question.<\/p>\n
Furthermore, it is also strongly recommended for both parties to get in touch with their banks during this phase and not after signing the contract. Banks have experience in international trade and can provide valuable advice for the smooth execution of the transaction in legal, logistical and financial terms.<\/p>\n
2. The standby letter of credit request<\/h3>\n
The importer asks his bank to open a standby letter of credit in favor of the exporter. He hands out a letter of order to the bank where he precisely states the terms of the SBLC. It must, among other things, list the documents to be submitted by the exporter in the event of the SBLC being brought into play. The bank is very strict with the formalism of the demand. If the SBLC can refer to the contract between importer and exporter, it is important to note that under no circumstances is the bank bound by the terms of the contract.<\/p>\n
After getting the request, the bank carries out a thourough examination of his\u00a0client\u00a0situation. The bank may consider that the risk is too high and reject the request if it thinks that its\u00a0client\u00a0will not be able to pay in case the SBLC is put into play. Sometimes the bank may require his\u00a0client\u00a0to block some or all of the funds or to provide\u00a0collateral\u00a0in other forms. If the request is accepted, the bank informs the\u00a0client\u00a0by mail or other means.<\/p>\n
3. The issuance of the standby letter of credit<\/h3>\n
The importer\u2019s bank issues the standby letter of credit in accordance with the request received from his\u00a0client. The issuance of a SBLC is usually done by transmission of a\u00a0SWIFT MT 700\u00a0message if both banks are connected to the\u00a0SWIFT\u00a0networks. Otherwise, it is done by encrypted telex or by mailing a standardized form of the International Chamber of Commerce previously filled in. The sending of the MT 700 is the preferred solution because of the security and speed offered by the\u00a0SWIFT<\/a>\u00a0network.<\/p>\n
4. Notification of the standby letter of credit confirmed or not<\/h3>\n
The correspondent of the importer\u2019s bank after getting the SBLC may add its\u00a0confirmation, that is to say commit, as the issuing bank, to make the payment under the conditions defined in the SBLC. To keep things simple, we consider that the exporter\u2019s bank is the correspondent of the importer\u2019s bank. But it\u2019s not always the case.<\/p>\n
In any case (confirmation\u00a0of the SBLC or not), the correspondent notifies the exporter that a standby letter of credit is opened in his favor. He transmits the original in paper format.<\/p>\n
As stated above, the SBLC is not intended to be used if everything works as expected. It can happen though, that the payer is unable to fulfill his obligations. In that case, what does the beneficiary do? In the next article, we will see how a standby letter of credit is brought into play.<\/p>\n
\nStandBy Letter of Credit {SBLC} Description<\/b>
\n1. Instrument: Cash Backed StandBy Letter of Credit {SBLC}
\n2. Total Face Value: Eur\/USD 1Million (Min) to Eur\/USD 5 Billion (Max)
\n3. Issuing Bank: HSBC London\/Hong Kong, Barclays Bank London, Citibank New York, Deutsch Bank Germany or any AAA Rated Bank.
\n4. Age: One Year and One Day (with rolls and extensions where applicable)
\n5. Leasing Price: 4% of Face Value plus 2% brokers commission (Applicable only if there are brokers in the transaction)
\n6. Delivery: SWIFT MT-760
\n7. Payment: MT103 Swift Wire Transfer
\n8. Hard Copy: Bank Bonded Courier within 7 banking days.<\/p>\n<\/p>\n
SAMPLE SWIFT MT-760 FROM ISSUING BANK TO RECEIVER BANK<\/h2>\n
(Text may vary in substance but the essential undertaking must be maintained)<\/p>\n
FROM
\nBANK NAME:
\nBANK ADDRESS:
\nBANK TEL:
\nBANK FAX:
\nBANK OFFICER NAME:
\nSWIFT CODE:
\nACCOUNT NAME:
\nACCOUNT NO:<\/p>\nTO
\nBANK NAME:
\nBANK ADDRESS:
\nBANK TEL \/ FAX:
\nBANK OFFICER NAME:
\nSWIFT CODE:
\nACCOUNT NAME:
\nACCOUNT NO:<\/p>\nTRANSACTION CODE:
\nBG\/SBLC NO:
\nCURRENCY:
\nAMOUNT:
\nISSUING DATE:
\nMATURITY DATE:<\/p>\nFOR THE VALUE RECEIVED, WE NAME & ADDRESS OF BG \/SBLC
\nISSUING BANK&XX. HEREBY IRREVOCABLY AND UNCONDITIONALLY,
\nWITHOUT PROTEST OR NOTIFICATION PROMISE AND GUARANTEE TO
\nPAY ON TIME, IN FULL AND WITHOUT DELAY, AGAINST THIS BG\/SBLC IN
\nFAVOUR OF XXCLIENT'S NAMEXXX, THE BEARER OR HOLDER THEREOF,
\nAT MATURITY THE OF 00,000,000.00 (AMOUNT IN WORD) IN THE LAWFUL
\nCURRENCY OF XXX THE UNITED STATES OF AMERICA OR EUROPEAN
\nUNION XXX.<\/p>\nSUCH PAYMENT WILL BE UPON PRESENTATION AND SURRENDER OF
\nTHIS BG\/SBLC AT THE OFFICE OF XX&;NAME OF BG\/SBLC ISSUING
\nBANK&;XX WITHOUT SETOFF AND FREE AND CLEAR OF ANY
\nDEDUCTIONS, CHARGES, FEE OR WITHHOLDING OF ANY NATURE NOW
\nOR HEREAFTER IMPOSED, LEVIED, COLLECTED, WITHHELD OR
\nASSESSED BY THE GOVERNMENT OF THE ISSUING OR PAYING BANK OR
\nANY POLITICAL SUBDIVISION OR AUTHORITY THEREOF OR THEREIN.<\/p>\nTHIS BG\/SBLC SHALL BE GOVERNED AND BE CONSTRUED IN
\nACCORDANCE WITH THE UNIFORM RULES FOR DEMAND GUARANTEE
\n(URDG), AS SET FORTH BY THE INTERNATIONAL CHAMBER OF
\nCOMMERCE, PARIS, FRANCE ICC PUBLICATION #600.<\/p>\nTHIS BG\/SBLC IS TRANSFERABLE, ASSIGNABLE AND DIVISIBLE WITHOUT
\nPRESENTATION TO US.<\/p>\nFOR AND ON BEHALF OF:
\nXXX ISSUING BANK XXX
\nXXX ISSUING BANK ADDRESS XXX
\nBANK OFFICER
\n1 BANK
\nOFFICER 2
\nTITLE
\n(PIN)
\nTITLE (PIN)<\/p>\n<\/p>\n
Our bank instrument can be engaged in PPP Trading, Trade Finance, Import & Export Transactions, Discounting and Monetization, signature project (s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kinds of projects.<\/p>\n
As leading sblc providers, we deliver with time and precision as set forth in the deed of agreement (DOA). Our bank guarantee and\u00a0Standby Letters of Credit\u00a0terms and Conditions are reasonable, below is our instrument description.<\/p>\n
Once the transaction is in progress, we ensure we keep you posted on the progress of your paper. Instead of stressing yourself out looking for a financial instrument or company why not let professionals like us deliver financial instruments to you within the time frame required by you.<\/p>\n
OUR SERVICES ARE:
\nLoans: (Non Recourse Loans, Business Loans, Secured Loans, Unsecured Loans, International Project Financing)
\nPurchase Bank Instruments (Bank Guarantees and Standby Letter of Credit)
\nLease Bank Instruments (BG, SBLC, DLC, Letters of Credit)
\nLetters of Credit (DLC, L\/C, Usance LC)
\nInvestments and Wealth Management
\nInsurance Underwriting Services
\nPPP and Trading Platforms
\nCorporate Finance<\/p>\nBROKER INQUIRIES ARE WELCOMED AND APPRECIATED: Our brokers receive 2% commission for referral. Daisy Chains of Brokers, Scammers & Time Wasters Will Not Be Entertained. We assist Clients and brokers in their attempt to secure funding by working on their funding requests that may require innovative financing.<\/p>\n
We would welcome the chance to earn your trust and deliver you the best financial service in the industry. Have a look at our portfolio here:\u00a0https:\/\/
grandcityinvestment.com\/ portfolio\/<\/a><\/p>\n Contact us today to know how a Leased Standby Letter of Credit mt760 from barclays bank, hsbc bank, Chase Bank, Standard Chartered Bank or Bank of America can help you conclude worthy deals with your suppliers and contractors.<\/p>\n
Email: apply@grandcityinvestment.com<\/a>
\nWebsite: https:\/\/grandcityinvestment.com<\/a><\/h3>\n<\/div>\n <\/div>\n\n\u00a0Documentary credit<\/a>,\u00a0Letter of credit<\/a>,\u00a0Trade Finance<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The Standby Letter of Credit \u2013 Definition, Issuance and Notification Another prominent payment technique used in international trade is the Standby Letter of Credit. What is a Standby Letter of Credit (SBLC)? How is it different from a Letter of Credit? How do issuance and…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[251,240,475,228,431,52,474],"class_list":["post-718","post","type-post","status-publish","format-standard","hentry","category-standby-letter-of-credit-sblc","tag-sblc-mt760","tag-sblc-provider","tag-sblcmt760-provider","tag-standby-letter-of-credit","tag-standby-letter-of-credit-meaning","tag-standby-letter-of-credit-provider","tag-standby-letter-of-credit-types"],"yoast_head":"\n
Standby Letter of Credit Definition, Issuance and Notification - Grand City Investment Ltd<\/title>\n<meta name=\"description\" content=\"Standby Letter of Credit is\u00a0a guarantee\u00a0issued by the importer\u2019s bank, in favor of the exporter, for amount agreed in a commercial contract.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Standby Letter of Credit Definition, Issuance and Notification - Grand City Investment Ltd\" \/>\n<meta property=\"og:description\" content=\"Standby Letter of Credit is\u00a0a guarantee\u00a0issued by the importer\u2019s bank, in favor of the exporter, for amount agreed in a commercial contract.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\" \/>\n<meta property=\"og:site_name\" content=\"Grand City Investment Ltd\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/grandcityinvestment\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-29T11:02:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-02-07T09:46:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/x.com\/grandcityinvest\" \/>\n<meta name=\"twitter:site\" content=\"@grandcityinvest\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/grandcityinvestment.com\/#\/schema\/person\/6289a5dd939bfa4334d02e3ca44b08e3\"},\"headline\":\"Standby Letter of Credit Definition, Issuance and Notification\",\"datePublished\":\"2020-10-29T11:02:59+00:00\",\"dateModified\":\"2021-02-07T09:46:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\"},\"wordCount\":2003,\"publisher\":{\"@id\":\"https:\/\/grandcityinvestment.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png\",\"keywords\":[\"SBLC MT760\",\"sblc provider\",\"SBLCMT760 Provider\",\"standby letter of credit\",\"Standby Letter of Credit meaning\",\"Standby Letter of Credit Provider\",\"Standby Letter of Credit types\"],\"articleSection\":[\"StandBy Letter of Credit (SBLC)\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\",\"url\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\",\"name\":\"Standby Letter of Credit Definition, Issuance and Notification - Grand City Investment Ltd\",\"isPartOf\":{\"@id\":\"https:\/\/grandcityinvestment.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png\",\"datePublished\":\"2020-10-29T11:02:59+00:00\",\"dateModified\":\"2021-02-07T09:46:19+00:00\",\"description\":\"Standby Letter of Credit is\u00a0a guarantee\u00a0issued by the importer\u2019s bank, in favor of the exporter, for amount agreed in a commercial contract.\",\"breadcrumb\":{\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage\",\"url\":\"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png\",\"contentUrl\":\"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/grandcityinvestment.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Standby Letter of Credit Definition, Issuance and Notification\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/grandcityinvestment.com\/#website\",\"url\":\"https:\/\/grandcityinvestment.com\/\",\"name\":\"Grand City Investment Ltd\",\"description\":\"Partner With Us To Achieve Your Goals\",\"publisher\":{\"@id\":\"https:\/\/grandcityinvestment.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/grandcityinvestment.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/grandcityinvestment.com\/#organization\",\"name\":\"Grand City Investment Limited\",\"url\":\"https:\/\/grandcityinvestment.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/grandcityinvestment.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/grandcityinvestment.com\/wp-content\/uploads\/2020\/05\/grandcity-logo.jpg\",\"contentUrl\":\"https:\/\/grandcityinvestment.com\/wp-content\/uploads\/2020\/05\/grandcity-logo.jpg\",\"width\":474,\"height\":448,\"caption\":\"Grand City Investment Limited\"},\"image\":{\"@id\":\"https:\/\/grandcityinvestment.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/grandcityinvestment\/\",\"https:\/\/x.com\/grandcityinvest\",\"https:\/\/www.instagram.com\/grandcityinvestment\/\",\"https:\/\/www.linkedin.com\/company\/grand-city-investment-ltd\/\",\"https:\/\/www.pinterest.com\/grandcityinvestment\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/grandcityinvestment.com\/#\/schema\/person\/6289a5dd939bfa4334d02e3ca44b08e3\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/grandcityinvestment.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f9c35f0a168b29f995f3345fcf649c736247b883d318803282f3977e1a83d442?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f9c35f0a168b29f995f3345fcf649c736247b883d318803282f3977e1a83d442?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"description\":\"Grand City Investment Limited is a business loan lender, Standby Letter Of Credit Provider, BG\/SBLC provider, bank guarantee provider & bank instruments provider in Hong Kong. www.grandcityinvestment.com\",\"sameAs\":[\"https:\/\/grandcityinvestment.com\",\"https:\/\/www.pinterest.com\/grandcityinvestment\",\"https:\/\/x.com\/https:\/\/x.com\/grandcityinvest\"],\"url\":\"https:\/\/grandcityinvestment.com\/en_US\/author\/admin\/\"}]}<\/script>\n","yoast_head_json":{"title":"Standby Letter of Credit Definition, Issuance and Notification - Grand City Investment Ltd","description":"Standby Letter of Credit is\u00a0a guarantee\u00a0issued by the importer\u2019s bank, in favor of the exporter, for amount agreed in a commercial contract.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/","og_locale":"en_US","og_type":"article","og_title":"Standby Letter of Credit Definition, Issuance and Notification - Grand City Investment Ltd","og_description":"Standby Letter of Credit is\u00a0a guarantee\u00a0issued by the importer\u2019s bank, in favor of the exporter, for amount agreed in a commercial contract.","og_url":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/","og_site_name":"Grand City Investment Ltd","article_publisher":"https:\/\/www.facebook.com\/grandcityinvestment\/","article_published_time":"2020-10-29T11:02:59+00:00","article_modified_time":"2021-02-07T09:46:19+00:00","og_image":[{"url":"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png","type":"","width":"","height":""}],"author":"admin","twitter_card":"summary_large_image","twitter_creator":"@https:\/\/x.com\/grandcityinvest","twitter_site":"@grandcityinvest","twitter_misc":{"Written by":"admin","Est. reading time":"10 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#article","isPartOf":{"@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/"},"author":{"name":"admin","@id":"https:\/\/grandcityinvestment.com\/#\/schema\/person\/6289a5dd939bfa4334d02e3ca44b08e3"},"headline":"Standby Letter of Credit Definition, Issuance and Notification","datePublished":"2020-10-29T11:02:59+00:00","dateModified":"2021-02-07T09:46:19+00:00","mainEntityOfPage":{"@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/"},"wordCount":2003,"publisher":{"@id":"https:\/\/grandcityinvestment.com\/#organization"},"image":{"@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage"},"thumbnailUrl":"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png","keywords":["SBLC MT760","sblc provider","SBLCMT760 Provider","standby letter of credit","Standby Letter of Credit meaning","Standby Letter of Credit Provider","Standby Letter of Credit types"],"articleSection":["StandBy Letter of Credit (SBLC)"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/","url":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/","name":"Standby Letter of Credit Definition, Issuance and Notification - Grand City Investment Ltd","isPartOf":{"@id":"https:\/\/grandcityinvestment.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage"},"image":{"@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage"},"thumbnailUrl":"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png","datePublished":"2020-10-29T11:02:59+00:00","dateModified":"2021-02-07T09:46:19+00:00","description":"Standby Letter of Credit is\u00a0a guarantee\u00a0issued by the importer\u2019s bank, in favor of the exporter, for amount agreed in a commercial contract.","breadcrumb":{"@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#primaryimage","url":"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png","contentUrl":"https:\/\/ci4.googleusercontent.com\/proxy\/hSm9jxiiX3VxII4Z-AedAkSiMh2AnSTbXvR7f5KmYivN5xGMblpoSz14jl3Ud34jX9ScXxiXZN--XQp_x4AEz_b_wD3K1ajGtMJ25DFfLXVcyLIK254_EbgL_7Y6h6n41g_N_xvPPB_3bVVIeQnc2cwv-cUeJA=s0-d-e1-ft#https:\/\/www.paiementor.com\/wp-content\/uploads\/2019\/07\/Standby-Letter-of-Credit-Issuing-1024x421.png"},{"@type":"BreadcrumbList","@id":"https:\/\/grandcityinvestment.com\/standby-letter-of-credit-definition-issuance-and-notification\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/grandcityinvestment.com\/"},{"@type":"ListItem","position":2,"name":"Standby Letter of Credit Definition, Issuance and Notification"}]},{"@type":"WebSite","@id":"https:\/\/grandcityinvestment.com\/#website","url":"https:\/\/grandcityinvestment.com\/","name":"Grand City Investment Ltd","description":"Partner With Us To Achieve Your Goals","publisher":{"@id":"https:\/\/grandcityinvestment.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/grandcityinvestment.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/grandcityinvestment.com\/#organization","name":"Grand City Investment Limited","url":"https:\/\/grandcityinvestment.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/grandcityinvestment.com\/#\/schema\/logo\/image\/","url":"https:\/\/grandcityinvestment.com\/wp-content\/uploads\/2020\/05\/grandcity-logo.jpg","contentUrl":"https:\/\/grandcityinvestment.com\/wp-content\/uploads\/2020\/05\/grandcity-logo.jpg","width":474,"height":448,"caption":"Grand City Investment Limited"},"image":{"@id":"https:\/\/grandcityinvestment.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/grandcityinvestment\/","https:\/\/x.com\/grandcityinvest","https:\/\/www.instagram.com\/grandcityinvestment\/","https:\/\/www.linkedin.com\/company\/grand-city-investment-ltd\/","https:\/\/www.pinterest.com\/grandcityinvestment\/"]},{"@type":"Person","@id":"https:\/\/grandcityinvestment.com\/#\/schema\/person\/6289a5dd939bfa4334d02e3ca44b08e3","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/grandcityinvestment.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f9c35f0a168b29f995f3345fcf649c736247b883d318803282f3977e1a83d442?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f9c35f0a168b29f995f3345fcf649c736247b883d318803282f3977e1a83d442?s=96&d=mm&r=g","caption":"admin"},"description":"Grand City Investment Limited is a business loan lender, Standby Letter Of Credit Provider, BG\/SBLC provider, bank guarantee provider & bank instruments provider in Hong Kong. www.grandcityinvestment.com","sameAs":["https:\/\/grandcityinvestment.com","https:\/\/www.pinterest.com\/grandcityinvestment","https:\/\/x.com\/https:\/\/x.com\/grandcityinvest"],"url":"https:\/\/grandcityinvestment.com\/en_US\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/posts\/718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/comments?post=718"}],"version-history":[{"count":3,"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/posts\/718\/revisions"}],"predecessor-version":[{"id":721,"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/posts\/718\/revisions\/721"}],"wp:attachment":[{"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/media?parent=718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/categories?post=718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/grandcityinvestment.com\/en_US\/wp-json\/wp\/v2\/tags?post=718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<!-- This website is optimized by Airlift. Learn more: https://airlift.net. Template:. Learn more: https://airlift.net. Template: 6a10b68fc6af5a0bc4ab71fd. Config Timestamp: 2026-05-22 20:03:26 UTC, Cached Timestamp: 2026-06-09 20:58:08 UTC -->
- \n
- \n