What Is Standby Letter Of Credit And How To Use It?

1
Welcome
2
What Is StandBy Letter Of Credit And How To Use
It?
3
It is important to know about SLOC if you are
doing cross border trades since this will allow
the free flow of international trade and make it
secured. The SBLC acts as the guarantee of
payment which is issues by the bank or any other
financial organization on behalf of their client.
It indicates that if the buyer doesnt pay the
amount on the mentioned date then the bank will
provide the money to the seller on the basis of
submission of the document.
4
(No Transcript)
5
If SBLC is considered as the guarantee, for
financial needs you can use the medium-term note.
It is one of the financial instrument which you
can get for a differing maturity time period. The
corporate companies most of the time use these
MTNs so that they can get constant money flow
which is required for the business. Even though
there are short term investments, this
medium-term notes can benefit any type of
business to provide a cash flow from the
investors.
6
(No Transcript)
7
When can you use the Standby Letter of Credit
(SBLC)? The reason why many people use the
Standby Letter of Credit (SBLC) is that it serves
as a proof of good faith element in the business
transactions. Mainly it provides a guarantee for
the payment of the goods or services purchased by
the client. If the client faces any issue in
paying the amount during the due period, the
seller can submit the required documents and get
the amount involved in the trading. Since the
payment will be made for the seller in any
situation, it will provide a comfortable feeling
for them to start the trading.
8
(No Transcript)