HomeStandby Letter of Credit
SBLC Process
Looking to avail Standby Letter of Credit as a payment guarantee? Follow the simple SBLC Process to apply Standby LC, MT760 from European banks at ZERO Cash Margin within 48hrs!
SBLC MT760 Process
- The buyer submits the SBLC request by submitting a SPA or a proforma invoice of the trade deal.
- Further, our team will study their trade deal. After that, we will inform the party, whether their request is approved or not. If approved, we will ask the client to sign the service agreement & pay the admin charges to start working on their SBLC deal.
- Once we receive the admin charges, we will start working with our bank to structure the SBLC and will send the SBLC draft for the client’s approval.
- The client will review the SBLC draft and convey their approval to us. Also, they will pay the required issuance fee to proceed with SBLC issuance.
- Finally, we will instruct our bank to issue the SBLCs from our own accounts available with European Banks via Swift MT760 in favor of the seller. Also, we will complete the entire SBLC issuance process within 48hrs.
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Standby Letter of Credit Video
Latest Transaction
SBLC Issued for a Client from India
A Client from India had an import requirement for PPE Supplies amid the COVID Pandemic. To facilitate the PPE Supplies order from a Supplier in China, they required an SBLC Facility. And our company facilitated the required SBLC through our European Bank Account at ZERO Collateral in just 48hrs.
Amount: USD 875,000
Instrument: SBLC MT760
Validity: 180 Days
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What is a Standby Letter of Credit?
Standby Letters of Credit is issued by a bank as a payment guarantee to assure the seller that in the event of the buyer’s default in making the payment, the bank will be liable to pay the specified amount as per the agreed contract.
With the issuance of SBLC, the bank is undertaking the payment commitment on behalf of the buyer. So, before issuing SBLC, the buyer’s bank will verify the credit quality of the buyer. Once the buyer’s bank is satisfied with the credit history, they will provide a written undertaking to the seller’s bank. This is to assure the payment commitment towards the seller, in case of the buyer’s default.
Since the Standby Letters of Credit is issued after verifying the creditworthiness of the buyer, it stands as a symbol of faith in trade transactions. At the same time, it also acts as proof of the buyer’s financial worth and payment skills. Further, it can serve as a surety to avail credit lines; for those who want to do their business without using their assets.
For businesses, the benefit of having SBLCs is that they can come out from the worst-case scenario at ease. Likewise, in today’s competitive world, traders face difficulties in competing against bigger and better projects. But, having SBLC gives a global status to the buyer’s profile. Even more, it helps them to get the deal awarded with ZERO upfront payment to the seller.
SBLC Issuance
Usually, SBLCs are issued via MT760 on behalf of the buyer and in favor of the seller as an Irrevocable SBLC. This is to say that once it has been issued & transmitted via SWIFT MT760, it cannot be revoked or canceled.
However, it can be transferred or assigned to another party upon written confirmation from the first party. But, based on the fact, that the transferring banks must notify the issuing bank about the amount of SBLC transferred along with the effective date of transfer.
Parties Involvedin the Standby Letters of Credit
- Applicant – It’s a client who requests to issue MT760. At the same time, to get the MT760 issued, they should have enough credit lines. Or else, they have to provide financial security or cash margin.
- Beneficiary – The supplier, who receives the SBLC in their account.
- Issuing Bank – The applicant or buyer’s bank facilitates the issuance of SBLC.
- Correspondence / Advising Bank – The bank, who advises the issued MT760 to the supplier’s bank on behalf of the buyer. Further, this happens, in case, if the issuing bank doesn’t have a direct relationship with the supplier’s bank.
- Supplier’s Bank – The bank, where the supplier maintains their bank account. Also, the advising bank works for the supplier in keeping the fiscal tool in the banking system.
Benefits to Avail Standby Letters of Credit
As a Buyer,
- You don’t need to provide any collateral or cash margin to us. In addition, you don’t need to have a direct relationship with our bank.
- Having MT760 shows your fiscal worth to do trade. Further, this may enhance your status to do business with traders both locally and globally.
- MT760 helps to reduce risks, boosts production, and also assists to optimize profit. Even more, this makes the local and global trade deals safer and secure.
As a Supplier,
- Payment is confirmed; if you comply with the T&C’s as per the issued MT760s.
- In case, if the buyer goes bankrupt or fails, the issuing banks will make the payment for you on behalf of the buyer.
- Ensures you will get the payment in a specified currency within a set time period.
Get SBLC to Import Goods on Credit Basis
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How Much Does an SBLC Cost?
The cost of SBLCs mainly includes commission, processing fee, swift charges, and also the advising fee.
Further, the SBLC fee may also vary depending upon the tenure of MT760. Mostly, the issuance fee of SBLCs is based on the value of the SBLC. Also, the fees will be borne by the buyer and it should be stated in the issued SBLC.
If you’re planning to apply for SBLC from your bank, they may require a 100% collateral or cash margin to proceed with your SBLC request. But in most cases, traders won’t have funds available to provide cash margin to the bank to get the required SBLC. In this case, their Standby LC request will be rejected by their bank.
If you are looking to get SBLC MT760 without a cash margin, you can contact us with your SBLC request.
As Genuine SBLC Providers in Dubai, we offer:-
Deal Conclusion in 48 Hours
Normally, we conclude the deal within 48 hours. i.e. 2 working days from the receipt of documents and the charges.
Local and Global Reach
We can provide SBLCs to any country to conclude your trade either locally or globally.
Competitive Rates
Our Standby LC issuance charges are more affordable than other lenders.
SWIFT Network
Also, our bank uses the Swift network to transmit Standby LC between banks.
Are you doing imports and exports? Looking to get MT760 Guarantee to import goods from local vendors on a credit basis? Contact Bronze Wing Trading L.L.C. to avail SBLC MT760 in just 2 days!
Bronze Wing Trading L.L.C., the Genuine SBLC Providers in Dubai offers Standby Letters of Credit from the Top Banks in Europe. Moreover, with years of exp., our team of experts will structure your trade deal in the right way. So that, you will be able to conclude your trade deals without any hassles.
Get in touch with us today to get a Standby Letter of Credit from European Banks at ZERO Collateral!
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