A Standby Letter of Credit (SBLC) is a bank’s commitment of payment to a third party in the event that the banks’s client defaults on an agreement. It is a ‘standby’ agreement because the bank will have to pay only in a worst-case scenario. A SBLC can be used to guarantee the supplier in commercial transaction (import-export), to improve up the project financing structure bringing it to a bankability stage, drawn down a loan or simply to trigger a credit line from the Bank.

SBLC is a Collateral Facility which can be used also to raise funds through a so called non-recourse loan. A non-recourse loan can be structured with Monetization option only or the Owner/Lessee has the opportunity to be accepted on Trade which is managed on a Private Placement basis and which normally runs for 10 Months.

Furthermore, a SBLC is most often sought by a business to help it obtain a contract. The recipient of a standby letter of credit is assured that it is doing business with an individual or company that is capable of paying the bill or finishing the project. In the worst-case scenario, the bank issuing the SBLC will fulfil its client’s obligations.  

What you can to do, if you are interested to become the Beneficiary of a SBLC, is to read our page (updated time-by-time) were you can choose the transaction procedure that best suite according your needs and requirements.

 

DISCLAIMER:  IFA GROUP is not a licensed securities dealer, broker or US investment adviser or registered with any equivalent licencing/monitoring authority of any country, including the Financial Conduct Authority, or a certified public accountant or financial adviser. None of the information contained herein constitutes a solicitation for any purpose in any form or content, nor an offer to sell and/or buy securities and or properties. Any completed transaction is strictly one of private placement, and is in no way relying upon, or relating to the United States of America Securities Act of 1933, as amended, or related regulations. Merely describing the details or a cash-flow of a structured financial program or any other private placement program does not constitute an offer or solicitation of any kind and, if presented, is done so as a financial education or request for information.