What is a Standby Letter of Credit? (SBLC/SLOC)

A Standby Letter of Credit is basically a document that is issued by the bank that guarantees payment between two parties if one of them defaults on payment in a transaction.

It is mainly used in international trade and agreements where two parties of a transaction don’t know each other well, and is there to facilitate trust between them.

#standbyletterofcredit #sblc #sloc #letterofcredit

[teo]

The best explanation! Subscribed! Thanks for your help!❤

[ahmadal-haddad]

You explanation and animation are such amazing!!! keep it up

[elmnsuri]

will pay the seller for whatever reason ? even if the goods they sent aren't what was agree upon?

[mrpinkishpopli]

LC - payment guarantee when certian conditions are met
SLC- payment guarantee when certain conditions are not met i.e. buyer is unable to pay.

Are there any more conditions in SLC other than buyer not being able to pay???

[Jess-islv]

If the payee is a trust is it recommended that the drawee be the organization or the name of the ceo?

[sheetalc]

It sounds like bank guarantee when buyer defaults on payment.
Is there any difference between SBLC and BG ?

[joserodriguezpuntacana]

Que ventajas tiene esto para un negocio ??

[anisb]

Hi! Can you please answer my question. If the LC facility is specifically granted only for issuance of Sight LCs, can customer request to issues usance LCs?

[anirudhkar]

Hey Kieren, great video as usual! Could you do one on Exchange Traded Notes?

[joshuapatrick]

Hi kieren any idea is you can by loans based on this sblc or a bank guarantee ?? Is it possible??? Do you know anyone who needs such loans??