Standby Letter of Credit Process

Want to secure your payments through a Standby Letter of Credit? Apply for an SBLC (MT760) from top European banks with ZERO cash margin—processed and issued within 48 hours through our streamlined process.

• The buyer initiates the process by submitting a Sale Purchase Agreement (SPA) or a proforma invoice related to their trade deal.
• Our team then reviews the transaction and notifies the client of the approval status. Upon approval, we request the client to sign a service agreement and pay the necessary admin charges to proceed.
• Once the admin fee is received, we collaborate with our banking partners to structure the SBLC and share the draft with the client for review.
• After the client approves the SBLC draft and pays the issuance fee, we proceed to the final step.
• We instruct our European Bank to issue the SBLC via SWIFT MT760 in favor of the seller—completing the entire issuance within just 48 hours.

What is Standby Letter of Credit (SBLC)

• A Standby Letter of Credit is a financial instrument issued by a bank to serve as a payment guarantee. It assures the seller that if the buyer fails to fulfill the payment obligations, the bank will cover the agreed amount as outlined in the contract.
• By issuing an SBLC, the bank commits to making payment on behalf of the buyer. Prior to issuance, the bank thoroughly assesses the buyer’s creditworthiness. Once satisfied, the bank provides a written undertaking to the seller’s bank, guaranteeing payment in case of the buyer’s default.
• Since SBLCs are issued after confirming the buyer’s financial credibility, they serve as a mark of trust in trade transactions. They also reflect the buyer's financial strength and reliability. Additionally, SBLCs can act as collateral to secure credit lines, enabling businesses to operate without relying on their existing assets.
• For companies, having an SBLC offers protection in adverse situations. In a competitive market, where large deals often require strong financial backing, an SBLC enhances the buyer’s credibility and helps win contracts—often without the need for any advance payment.

Who Involved in the Standby Letter of Credit process

Applicant – The client who requests the issuance of MT760. To proceed, the applicant must either have sufficient credit lines or provide financial security or a cash margin.
Beneficiary – The supplier who receives the SBLC in their designated bank account.
Issuing Bank – The buyer’s or applicant’s bank responsible for issuing the Standby Letter of Credit (SBLC).
Advising Bank – This is the bank that transmits the issued MT760 to the supplier’s bank on behalf of the buyer, typically when the issuing bank does not have a direct relationship with the supplier’s bank.
Supplier’s Bank – The bank where the supplier holds their account. It also acts in coordination with the advising bank to ensure the financial instrument is recognized and maintained within the banking system.

Apply for Standby Letter Of Credit