What is a SBLC Discounting?
A guarantee of payment issued by a
bank on behalf of a consumer that's used as "payment of last resort"
ought to the consumer fail to fulfill a contractual commitment with a third
party. SBLC Discounting is made as a sign of good faith in
business transactions, and is proof of a buyer's credit quality and
compensation talents. The bank supply the (Source lines of code) SLOC can
perform temporary underwriting duties to make sure the credit quality of the
party seeking the letter of credit, then send notification to the bank of the
party requesting the SBLC Discounting.
A SBLC Discounting could be a written
undertaking given to the person with whom you're doing business to pay a specific quantity of cash within the event that you simply or a third
party don't meet specific financial or performance obligations.
Different types of SBLC Discounting offered
- Bid Guarantees (Bid Bond)
- Performance Guarantees (Performance Bond)
- Advance Payment Guarantees
- Retention Guarantees or Advance Payment Holdback Under Contract Guarantees
- Financial Guarantees
Key benefits
1. Improves your cash flow
- Eliminates or reduces the need to offer a beneficiary, with whom you have got entered into a contract, money collateral or different security to support the performance obligations under the contract.
- May eliminate the need for you to prepay for product or services, that permits you to use your funds for alternate purposes before payments become due.
- A bid or performance guarantee might assist you win contracts by providing the corporate with money security of payment.
2. Convenient
- Any Company has experience in structuring SBLC Discounting to satisfy your business wants whereas serving to protect your interests to the extent potential within the circumstances.
- Any Company has developed varied SBLC Discounting proformas to satisfy a range of scenarios; we will customize any of our formats to suit your wants, subject to bound requirements.
3. Access to trade finance expertise
- Our trade finance specialists offer you with structuring, mitigation and funding experience and up-to-date country and trade risk guidance to support and expedite your trade transactions.