Dubai, March 8, 2013: A standby letter of credit is always better than a bank loan. To guarantee performance or strengthen the credit worthiness of a customer, the bank issues a standby letter of credit. Those involved in international trade transactions can benefit from SBLC. To obtain a standby letter of credit, the buyers have to submit their requirements in terms of sales and purchase agreement or pro-forma invoice of their commercial transaction.

Also, certain documents and LC issuance fee charges are a few requirements to get it. The standby letter of credit will be issued by bank on behalf of buyer/importer and in favor of their supplier/exporter to conclude their trade deal. One of the advantages of SBLC is that it cannot be revoked or cancelled once issued and transmitted via authenticated swift MT-760 by an issuing bank.

Several parties whose existence is required to get the standby letter of credit are applicant, the client of a bank who applies for the SBLC; beneficiary, the supplier/party in whose favor the SBLC is issued; issuing bank; correspondence bank; and advising bank, the bank representing the beneficiary. If you want to know more about the standby letter of credit procedure, visit their web site at www.importletterofcredit.com/standby-letter-of-credit.