SBLC Meaning & bg sblc provider

SBLC Meaning & bg sblc provider What is Standby Letter of Credit (SBLC or SLOC)? A standby letter of credit (SBLC or SLOC) is a legal document that guarantees a bank’s commitment of payment to a seller in the event that the buyer–or the bank’s client–defaults on the agreement. Grand City Investment Limited is a Standby Letter of Credit provider, bg sblc provider, bank guarantee provider, Real SBLC Provider, bank instrument provider, Lease SBLC, SBLC Funding, SBLC Financing & BG SBLC Monetization, We are monetizers of bank instruments.

A standby letter of credit helps facilitate international trade between companies that don’t know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller certain to receive payment, a Standby Letter of Credit (SBLC or SLOC) doesn’t guarantee that the buyer will be happy with the goods. A standby letter of credit can also be abbreviated SBLC Also, a standby letter of credit is different from a bank guarantee.

How a Standby Letter of Credit Works A SLOC/SBLC is most often sought by a business to help it obtain a contract. The contract is a “standby” agreement because the bank will have to pay only in a worst-case scenario. Although an SBLC guarantees payment to a seller, the agreement must be followed exactly. For example, a delay in shipping or a misspelling a company’s name can lead to the bank refusing to make the payment.

What is the difference between SBLCs and LCs?

A Standby Letter of Credit is different from a Letter of Credit. An SBLC is paid when called on after conditions have not been fulfilled. However, a Letter of Credit is the guarantee of payment when certain specifications are met and documents received from the selling party.

Both the regular letter of credit and standby letter of credit are payment instruments used in international trade. However, there are some basic differences which we will try to explain below.

LC Vs. SBLC A. LC: A letter of credit is a promise from the bank that the buyer i.e. importer will fulfill his payment obligation and pay the full invoice amount on time. The role of the issuing bank is to make sure that the buyer pays. In case the buyer is unable to fulfill his obligation, the bank will pay to the seller i.e. the exporter, but the funds come from the buyer.

B. SBLC: A standby letter of credit is a secondary payment method where bank guarantees the payment when terms of the letter of credit are fulfilled by the seller. It is a kind of additional safety net for the seller. The buyer may not pay the seller due to multiple reasons such as cash flow crunch, dishonesty, bankruptcy, etc. But as long as the seller meet’s the requirement of a standby letter of credit, the bank will pay.

The purpose of this letter is to establish a bank guarantee for the deal or transaction with a third party. For example, if an individual wishes to take a loan, but does not have a sufficient credit standing, the bank may then ask for a guarantee from another party (third party), and this is done in the form of a standby letter of credit that is issued by another bank. However, the said individual would then have to produce certain documents or evidence to support the nonperformance of the buyer to obtain the payment through the SBLC. The bank is obligated to make payment if the documents presented comply with the terms of contract. Though, the SBLC are considered very versatile and can be used with modifications to suit the interests and requirements of the buyers and sellers.

Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the counterparty risk of the buyer paying the seller for goods. The Standby Letter Of Credit (SBLC) is governed by a set of guidelines known as the Uniform Customs and Practice (UCP 600), which was first created in the 1930s by the International Chamber of Commerce (ICC).

Uses of SBLC

An SBLC is frequently used as a safety mechanism for the beneficiary, in an attempt to hedge out risks associated with the trade. Simplistically, it is a guarantee of payment which will be issued by a bank on the behalf of a client. It is also perceived as a “payment of last resort” due to the circumstances under which it is called upon. The SBLC prevents contracts going unfulfilled if a business declares bankruptcy or cannot otherwise meet financial obligations.

Furthermore, the presence of an SBLC is usually seen as a sign of good faith as it provides proof of the buyer’s credit quality and the ability to make payment. In order to set this up, a short underwriting duty is performed to ensure the credit quality of the party that is looking for a letter of credit. Once this has been performed, a notification is then sent to the bank of the party who requested the Letter of Credit (typically the seller).

In the case of a default, the counter-party may have part of the finance paid back by the issuing bank under an SBLC. Standby Letter of Credit’s are used to promote confidence in companies because of this.

Types of Standby Letters of Credit (SBLC/SLOC) •

Performance SLOC o Performance standby letters of credit ensure the non financial contractual obligations (quality of work, amount of work, time, cost, etc.) are performed in a timely and satisfactory manner. If these obligations are not met, the bank will pay the third party in full.

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Financial SLOC o Financial standby letters of credit ensure financial contractual obligations are fulfilled. Most SLOCs are financial. o Financial SLOCs are often required when performing international trade or other large purchase contracts under which other forms of payment protections (such as litigation in the event of non-payment) can be difficult to obtain.

Advantages of a Standby Letter of Credit (SBLC / SLOC) The SLOC is often seen in contracts involving international trade, which tend to involve a large commitment of money and have added risks.

For the business that is presented with a SLOC, the greatest advantage is the potential ease of getting out of that worst-case scenario. If an agreement calls for payment within 30 days of delivery and the payment is not made, the seller can present the SLOC to the buyer’s bank for payment. Thus, the seller is guaranteed to be paid. Another advantage for the seller is that the SBLC reduces the risk of the production order being changed or canceled by the buyer.

An SBLC helps ensure that the buyer will receive the goods or service that’s outlined in the document. For example, if a contract calls for the construction of a building and the builder fails to deliver, the client presents the SLOC to the bank to be made whole. Another advantage when

involved in global trade, a buyer has an increased certainty that the goods will be delivered from the seller.

Also, small businesses can have difficulty competing against bigger and better-known rivals. An SBLC can add credibility to its bid for a project and can often times help avoid an upfront payment to the seller.

Cost of SBLC Grand City Investment Limited are lc, bg and sblc providers, our sblc leasing fee is 4% leasing fee per year. If the bg / sblc is needed for more than one year, there will be an option of rolls and extensions where applicable. If the terms of the contract are fulfilled early, the customer can cancel the BG/SLBC without incurring additional charges.

What is BG SBLC funding, SBLC Financing & BG/SBLC Monetization?

SBLC financing or bank guarantee funding or bg sblc monetization is the process of converting a bg bank guarantee or sblc into a legal tender.

Grand City Investment Limited is a bg sblc monetizers. We can arrange bg / sblc for your import and export transactions, credit enhancement as well as in your trade finance transactions. We can also discount or monetize a bg or sblc @ 75% LTV. DESCRIPTION OF BUY/PURCHASE BANK INSTRUMENT (BG/SBLC/SLOC) 1. Instrument: BG (Bank Guarantee) Standby Letter of Credit (SBLC), cash-backed, 2. Total Face Value: Eur/USD 2 Million (Min) to Eur/USD 500m (Max) 3. Issuing Bank: HSBC Hong Kong, Barclays Bank London, Deutsch Bank AG, Frankfurt or any AA Rated Bank.

4. Term / Age: One (1) Year and One (1) day, Fresh Cut 5. Invoice Price: 45% Net and 47% Gross of the face value of each BG/SBLC to the Seller, including 2% consultancy fees as per IMFPA. 6. Consultation Fee:

In total of 2%, which is to be split and paid to the consultants as follows:

1% to …(Seller’s Mandate).., paid by the Seller/Payer-1 1% to ………………………, paid by the Buyer/Payer-2 7. Delivery of instrument: To-Bank by SWIFT MT-760, as per the Schedule of Delivery of Buy-Sell Agreement

Bank-

8. Payment for instruments:

By SWIFT MT-103 wire transfer 9. Original Hard Copy: By bonded courier to Buyer’s designated Depository Bank within Seven (7) bank working days after receipt of BG/SBLC(s) settlement payment by SWIFT MT-103 into the Seller’s account.

BELOW IS THE DESCRIPTION OF LEASE BANK INSTRUMENTS (BG/SBLC/SLOC)

1. Instrument: Fully Cash Backed Bank Guarantee {BG} or StandBy Letter of Credit {SBLC} 2. Total Face Value: USD 2Million (Min) to USD 500m (Max) 3. Issuing Bank: HSBC Hong Kong, Barclays Bank London or any prime Bank.

4. Age: One Year and One Day (with rolls and extensions where applicable) 5. Leasing Price: 4% (+ 2% brokers commission where applicable) 2% broker commission applies to clients that were introduced by brokers 6. Delivery: SWIFT MT-760 7. Payment: MT103 Wire Transfer 8. Hard Copy: Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument How to Obtain a Standby Letter of Credit The standby letter of credit process is similar to that of obtaining a commercial loan, with a few key differences.

As with any business loan, you will need to provide proof of your creditworthiness to the bank.

However, the SLOC approval process is much quicker, with letters often being issued within a week of all paperwork being submitted.

When it comes to issuance, leasing, funding and monetization of any bank instrument such as bank guarantee, standby letter of credit, bg sblc, getting to the finish line is all that counts and that’s what we excel in at Grand City Investment Limited.

Below are a few of the things that make us unique and different from other companies.

1. We are a Government of Hong Kong Licensed Money Lender that Is Legally Registered in Hong Kong since May 29, 1984, that is 37 years of successful service and excellence.

2. we issue bg, dlc and sblc from world class banks such as Citibank New York, Chase Bank, Welsfargo Bank, Bank of America, Credit Suisse, Barclays bank London, HSBC Hong Kong or HSBC London, Standard Chartered Bank London, Dubai or Hong Kong, UBS Switzerland, Deutsche Bank AG Germany or any prime bank of choice.

3. We issue bg sblc in both usd or Euro Currencies, if you pay in usd we Issue in usd & if you Pay in Euro, we issue in Euro.

4. Your Privacy is our Priority, we do not share your data or Business Transactions with third parties.

5. Since 1984 till date No Customer has ever had a failed transaction with us. We have 99% success rate.

6. Brokers Always Welcomed & Protected against possible circumvention.

7. We have solutions for every customer in every industry.

8. We are Efficient, Consistent, Transparent & Reliable 9. We are straight to the point 10. Experienced and qualified staff

11. Extremely Satisfied Clients 12. No prepayment penalty 13. Fast Approvals Closing 14. No Hidden Fees or charges Therefore, if you are looking for Lease or Rent Bank Guarantees, bg, dlc sblc, L/C or loans and project funding then you have come to the right place. Kindly contact us today for all your financial needs.

NOTICE TO BROKERS/AGENTS/COMPANY REPS: We value and appreciate brokers who are direct to their clients. New brokers are welcomed and compensated with between 1% to 2% commission on every deal. Here are a few of the many benefits of being a Grand City Investment broker:

SBLC Meaning & bg sblc provider • • • • •

Professional Support for brokers Earn between 1% to 2% Commission on Every Deal No Broker Chains, So please Be Direct to your clients Brokers are 100% Protected Against Possible Circumvention.

Wide Range of Financial Instruments to choose from such as bg sblc issuance & Monetization Programs.

Email: apply@grandcityinvestment.com | grandcityinvestment@protonmail.com Telephone: +852 8191 7151 Skype: dr.williams09787

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