{"id":412,"date":"2020-06-03T13:27:45","date_gmt":"2020-06-03T13:27:45","guid":{"rendered":"https:\/\/grandcityinvestment.com\/?p=412"},"modified":"2024-10-11T02:54:17","modified_gmt":"2024-10-11T02:54:17","slug":"what-is-bg-sblc-sloc-and-how-does-bg-sblc-funding-work","status":"publish","type":"post","link":"https:\/\/grandcityinvestment.com\/se_SP\/what-is-bg-sblc-sloc-and-how-does-bg-sblc-funding-work\/","title":{"rendered":"What Is BG\/SBLC\/SLOC and How Does BG SBLC Funding Work?"},"content":{"rendered":"

What Is BG\/SBLC\/SLOC and How Does BG SBLC Funding Work?<\/span><\/h2>\n

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Standby Letter of Credit (sblc \/ sloc) and bank guarantee (bg) are bank financial instrument that is issued by a financial institution such as a bank. These financial instruments can be used to obtain loan or credit facilities from banks, they are also used for trade financing, foreign exchange as well as import and export transactions.<\/span><\/h2>\n<\/div>\n\n\n\n\n
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What is Standby Letter of Credit (sblc sloc<\/span><\/a>)?
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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. 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 SBLC\/ SLOC doesn’t guarantee the buyer will be happy with the goods. A standby letter of credit can also be abbreviated SBLC or SLOC. <\/b><\/span><\/div>\n
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What Is BG\/SBLC\/SLOC and How Does BG SBLC Funding Work?<\/p><\/div>\n<\/div>\n

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How a Standby Letter of Credit Works <\/span><\/span><\/span><\/h2>\n
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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.<\/span><\/p>\n<\/div>\n

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There are two main types of standby letters of credit:<\/span><\/h1>\n<\/div>\n
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