Looking for a reliable and genuine provider to buy or lease a standby letter of credit or a bank guarantee, then you can stop your search here and no requirement to look any further; we are professional to manage the issuance and also fabricating of standby letter of credit, and we have done this many times with success.

We have a dedicated team that helps our clients as buyers or sellers of payment with a banker’s guarantee/standby letter of credit. A standby letter of credit assurance guarantees payment by the customer to a third party who has defaulted on an approval. The standby letter of credit are legal documents that designate the responsibilities and duties of each party and assist as an act of good trust. The standby letter of credit issuing bank performs normal underwriting tasks to ensure the client’s financial credibility that looks the letter of credit. Then it sends information to the bank of the party demanding the letter of credit.

Assure your seller or buyer of payment with a banker’s guarantee/standby letter of credit. In case you fail to complete your juridical duties, then we will honor the payment upon receipt of a claim complying with the guarantee conditions for your beneficiaries.

Types of Standby Letter of Credit

• A financial standby letter of credit:

Based on the financial standby letter of credit, offer guarantees of the payment for services and goods, as set out in the agreement. For instance, if a company of crude oil gives oil to a foreign buyer with the expectation that the buyer would pay in 30 days from the shipment date, but the payment not made by the selected date, the seller of crude oil can collect the payment from the buyer’s bank for delivered goods. Since it is a credit, the bank would collect the principal plus interest from the buyer.

• A performance standby letter of credit: 

Based on a performance standby letter of credit offer guarantees the completion of a project within stipulated timelines. If the bank customer cannot complete the project mentioned in the contract, then the bank promises to pay a specific amount on the contract to the third party.

A demonstration standby letter of credits is used in a project scheduled to be completed within a specific timeline, like construction projects. In the case of delaying the completion of the project, then the payment serves as a penalty and is used to compensate for the inconvenience caused to the client or to pay another contractor to handle the project.

Process for obtaining a standby letter of credit

• The consumer and seller allow running the business. The seller requires a letter of credit to guarantee payment.
• The buyer practices to his bank for a letter of credit in support of the seller.
• Bank of buyer approves the buyer’s credit risk, results and forwards the credit to its related bank. The related bank is usually situated in the equivalent geographic area as the seller.
• Advising bank will certify the credit and deliver the original credit to the seller.
• The Seller transport the assets, then check and produce the documentary to carry the letter of credit. Documentary needs can vary hugely as per the risk included in dealing with an appropriate company.
• The seller offers the necessary documents to the advice or verifying the bank has been prepared for payment.
• Advising or confirming bank checks the documents for agreement with the term and requirements of the letter of credit.
• If the documents are right, the money will be claimed on advice or confirmation by the bank.
• Debiting the account of the issuing bank.
• After getting the documents, waits till the issuing bank remits.
• Reimbursement on another bank as needed in the credit.
• Advising or confirming the bank will deliver the documents to the issuing bank.
• Now issuing bank will check the documents for the agreement. If they are in sequence, the issuing bank will debit the buyer’s account.
• The issuing bank then releases the documents to the buyer.