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Why acquire a SBLC

An SBLC (Standby Letter of Credit) acts as a financial guarantee issued by a bank on your behalf. It assures sellers that you, the buyer, will fulfill your payment obligations in a transaction if you default.
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KEY FACTS

Why Secure a Standby Letter of Credit (SBLC) for Your Business?

  • Enhanced Credibility: An SBLC demonstrates your financial strength and commitment to a transaction, boosting your credibility with sellers, particularly in international trade.
  • Unlock New Opportunities: SBLCs can open doors to new business partnerships and secure larger transactions by mitigating seller risk.
  • Improved Negotiation Power: With an SBLC, you may negotiate better payment terms or discounts due to the added security for the seller.
  • Mitigate Risk for Both Parties: SBLCs provide peace of mind for both you and the seller. You're protected from potential seller fraud, while the seller is assured of payment even if unforeseen circumstances prevent you from fulfilling your obligations.
  • Facilitate International Trade: SBLCs are widely recognized instruments in international trade, simplifying transactions and building trust across borders.

Banks who work with!

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Save your Money

Your money will be save until the charge arrive and all the quality will be verified.

KYC Protection

The bank use a KYC analisys to aprove SBLC between the costumer and the provider.

New Markets to Trade

We help you to find the best places to trades and the right people in africa, asia and America.

Frequently Asked Questions

Why do I need an SBLC for international trade?

An SBLC offers several benefits:

  • Increased Credibility: Demonstrates financial strength and commitment to the seller, especially for new or smaller companies.
  • Unlocks Opportunities: Secures larger transactions and opens doors to new business partnerships by mitigating seller risk.
  • Improved Negotiation Power: Potential for better payment terms or discounts due to the added security for the seller.
  • Risk Mitigation: Provides peace of mind for both buyer and seller. Protects the buyer from potential seller fraud, while assuring the seller of payment even if unforeseen circumstances occur.
What are the costs associated with acquiring an SBLC?

Costs typically include a bank issuance fee, an annual maintenance fee, and potentially a letter of credit utilization fee if the SBLC is called upon.

What documents do I need to apply for an SBLC?

Requirements vary by bank, but generally include financial statements, business plans, details of the underlying trade transaction, and information about the seller.

How long does it take to acquire an SBLC?

The approval process can take several weeks depending on the complexity of the transaction and the bank's procedures.

Can any company obtain an SBLC?

Banks typically assess financial health, creditworthiness, and the nature of the underlying transaction before approving an SBLC application.

What happens if the SBLC is called upon?

The issuing bank will pay the seller the guaranteed amount upon presentation of documents proving the buyer's default. This can have negative consequences for the buyer's creditworthiness.

What are the legal implications of using an SBLC?

It is crucial to understand the legal terms and conditions of the SBLC to ensure both parties' rights and obligations are clear. Consult with a lawyer specializing in international trade law.