What Is A Standby Letter Of Credit And How To Get It?

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What Is A Standby Letter Of Credit And How To Get
It?
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• The Standby Letter of Credit is like a bank
  guarantee provided to an international trader so
  that they could any type of risky situation where
  the chances of loss can be high or disastrous for
  the trader.In this guarantee, the bank will be
  playing a mediator like the part where if the
  buyer is unable to fulfill the contract as
  written the bank will pay the behalf of the
  importer.The stand by letter has saved many
  businesses and with this letter, you can show
  your business partners that you have the trust of
  the bank, so that they can have business with you
  without issues and grow your business to new
  heights.       

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• There are several types of letters of
  credit,    The domestic ones are opened in
  favor of a beneficiary who is domiciled in the
  same country, therefore, in this case, there is
  no corresponding bank figure.
•     The transferable, allow two or more
  beneficiaries to participate in the credit and
  are only transferable on one occasion. Generally,
  they are used by intermediaries in international
  trade such as commission agents, brokers, or
  consolidators.
•     The Stand-by, is used with the purpose of
  supporting the payment of monetary obligations on
  an agreed date. This type of letter is a
  guarantee instrument that is issued so that it is
  not used by the beneficiary.

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• Letter of Credit RouteThe seller is the one who
  requests the letter of credit from the buyer for
  security since through it an irrevocable
  commitment is established that cannot be canceled
  (terminated), but with the express consent of the
  beneficiary/seller. The buyer requests the
  establishment of a line of credit to the issuing
  bank, which in turn, establishes a correlational
  contract with the confirming/advising bank in the
  seller's city. The issuing bank issues the letter
  of credit and sends SWIFT (World Society for
  Interbank Financial Telecommunication) messages
  to the confirming bank, the seller receives the
  letter of credit and must verify that it
  corresponds to what was agreed with the
  buyer.Once the goods are delivered, the seller
  must present the documents verifying the shipment
  to the confirming bank, if the documents are in
  order, the bank pays at sight or agrees to pay at
  a future date. The confirming bank sends the
  documents to the issuing bank and the issuing
  bank, in turn, delivers the documents to the
  buyer.

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• The process of getting an SBLCRequestComplete
  and submit to the ITF a Standby Letter of Credit
  (SBLC) application using our online
  application.EraserThe ITF creates the
  individualized SBLC. The client confirms and
  signs the final version.Due diligenceThe ITF
  client compiles various requested documents
  related to his company. ITF analyzes these
  documents to ensure that the agreement complies
  with all international regulations.

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• IssueITF issues its client's SBLC through the
  agreed issuer. ITF monitors the SBLC carefully to
  ensure that it reaches the beneficiary.Once you
  have completed this process your application will
  be fulfilled and you will get your Standby Letter
  of Credit without any wait.

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