Emerging businesses like importers, trading houses, tender contractors, or project consortiums need the trade finance products like standby letter of credit (SBLC), letter of credit (DLC), and bank guarantees (BG) to participate in a sales contract or the project. due to a lack of assets and banking restrictions, credit facilities are limited to fulfill the demands. our company international trade finance (ITF) offers collateral-free unsecured trade finance for startups, SMEs, and large corporations.
A standby letter of credit (SBLC) and bank guarantees (BG) are an essential tool and a legal document used in global trade to govern the payments and performance, it is used in a sales contract and the tendering process to fulfill the financial obligations. If the applicant fails to deliver the commitments either financially or by performance, the beneficiary can raise a complaint against the applicant and demand the guarantor to recompense. Rules and regulations published by ICC as International Standby Practices (ISP) and Uniform Rules for Demand Guarantees (URDG).
Standard wording as per ICC - URDG & ISP Rules.
Acceptable worldwide by all governing bodies & Organizations
Financial and performance based SBLC & BG's
Documentary letter of credit (DLC) is widely used by the importers and exporters in global trade to reduce non-payment risks, DLC’s will act as an irrevocable instrument to fulfill the condition as per At sight or deferred payment terms. And it is issued by banks and financial institutions by promising the payment under the stipulated terms. Standardized rules published by the International chamber of commerce (ICC) as Uniform Customs and Practice for Documentary Credits (UCP) terms.
Standard wording as per ICC - UCP Rules.
Document collection and release
Strong correspondent bank network
Asset backed & Flexible invoice settlements
The standard model of a bank to bank communication is delivered via SWIFT Channel. Apart from letters of credit and Guarantees most common products are Ready willing and Able messages (RWA), Pre Advice, Proof of Funds (POF), Comfort Letter (BCL), etc.
Project developers and bidding contractors use these terms in project finance. Such standard messages are issued via SWIFT MT modes.