BANK INSTRUMENTS – for clients with reasonable funds
Stand by Letter of Credit SBLC/SLOC
A standby letter of credit SLOC is a Bank’s commitment of payment to a third party in the event that the bank’s client defaults on an agreement. Commonly called or well known in financial market names as BG/SBLC.
The technical Banking terminology for Standby Letter of Credit is SLOC.
It is a “stand by” agreement because the bank will have to pay only in a worst case scenario.
A SLOC is most often sought by a business to help it obtain a contract. There are two main types of SLOC:
- A financial SLOC guarantees payment for goods | services as specified by an agreement.
- The performance SLOC, which is less common, guarantees that the client will complete the project outlined in a contract. The bank agrees to reimburse the third party in the event that its client fails to complete the project.
Bank instruments are used for enhancing the client’s credit, allowing them to access large amounts of capital at one time.
Procurement – GF/Group upon established FA | Funding Account and signed/executed FCA | Funding Contractor Agreement will issue Stand By Letter’s of Credit, (SBLC’s) mainly from W10 top rated or 120 Global Banks with a minimum face value of 100M (jurisdiction/banks/currency and implementation venues to be determined and considered).
Monetization | Discounting | Forfaiting (see Page – MONETIZATION) – GF may also provide and/or monetize SBLC’s on other Top Tier Rated and Non-Rated Banks (terms/conditions will apply).
Additional information or details – Our Global Team will reply on any related inquiry with complete info submitted (proper contact numbers, company details) within 24 hours, as one of our BDM | Business Development Managers will be assigned locally.
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