Contact: Dr Eugene M. Edwards
Trade Finance & Trade Goods Payment Security Solutions.
Apply Here For Standby Letter of Credit (SBLC) Here!
Standby Letter of Credit (SBLC) Introduction
A Standby Letter of Credit is often used to provide security for an obligation, such as a lease or other long-term contract. Landlords may require a deposit or a standby letter of credit that guarantees payment from the issuing bank if a tenant falls in arrears. Often, large contracts may require at least one of the parties to have a standby letter of credit in place for the transaction to move forward. A standby letter of credit guarantees the beneficiary that it will be paid from a creditworthy bank if it’s unable to get paid by its counterparty in a transaction.
Eugene M. Edwards ICS provides standby letters of credit, allowing transactions to happen that otherwise might be considered too risky by the receiving entity.
Standby Letter of Credit (SBLC) Benefits
A letter of credit minimizes risk, maximizes control, and optimizes profits associated with international trade by making transactions simpler, smoother and safer for all sides.
You may not have the necessary collateral requirements or relationship with the bank to get a letter of credit—but we do.
You don’t have to leave deposits with your supplier since your letter of credit will be opened for the full amount of the transaction—so your cash is not tied up or at risk while your supplier can often borrow against a letter of credit.
You may significantly increase your ability to do business with companies outside the U.S. by bolstering your financial position with your suppliers.
You can build safeguards into the letter of credit, including inspection of the goods and quality control, and set production and delivery times. This gives you more quality control over your goods.
Payment is assured as long as you comply with the terms and conditions of the letter of credit. The credit risk is transferred from the buyer to the issuing bank, which is obligated to pay even if the buyer goes bankrupt.
You have easier access to financing and can transfer all or part of the letter of credit to another party, e.g., to purchase raw materials.
The collection time is minimized, as the letter of credit accelerates payment of receivables, and foreign exchange risk is eliminated when it is issued in the currency of your country.
5 Reasons to use Eugene M. Edwards ICS to deliver Standby Letter of Credit (SBLC) for you:
- 72 Hour Delivery – We normally deliver s Standby Letter of Credit (SBLC) within 72 hours of all documentation and payments being completed.
- Any Country – We will issue a Standby Letter of Credit (SBLC) for the import/export of goods from ANY country except Austria.
- Any Currency – We will issue a Standby Letter of Credit (SBLC) in almost any currency except Renminbi.
- Lower Fees – Our fees for issuing a Standby Letter of Credit (SBLC) are more cost-effective than many larger public banks.
- Less Restrictive – Our required control clauses for a Standby Letter of Credit (SBLC) are much easier than other banks.
- We use the Bank SWIFT Network to have the clients Standby Letter of Credit (SBLC) delivered Bank to Bank. We operate a reliable, efficient delivery and authentication process to ensure all Standby Letters of Credit (SBLC) are successfully delivered for our clients.
Client Deposits are 100% Protected with 2 Levels of Protection.
We value our relationships with our clients so much that ALL CLIENT DEPOSITS for a Standby Letter of Credit (SBLC) receive 2 Tiers of Protection which are:
- Corporate Refund Undertaking
- Non Performance Penalty
Standby Letter of Credit (SBLC) Costs
Costs are customized to each Goods transaction and therefore an exact quote can be provided once a completed application is received, but as a pricing guide:
A 1 Year Standby Letter of Credit (SBLC) costs 6.8% plus $1,000
A 90 Day Standby Letter of Credit (SBLC) costs 3.3% plus $500
Additional 30 Day periods cost .6% plus $150
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Estimated Completion Time:
A Standby Letter of Credit (SBLC) is normally issued within 72 hours of all documentation and payments being completed by the Applicant.