Standby Letters of Credit
A Standby Letter of Credit demonstrates your financial capability to business counter-party on a business deal. It enhances your credibility, and can often make the difference between a deal that gets done, and one that gets hung up for financial reasons.
STANDBY LETTERS OF CREDIT ARE OFTEN REQUIRED AS BACK-UP PAYMENT INSTRUMENTS IN COMMODITY TRANSACTIONS. THERE ARE WAYS TO TAKE A STANDBY (SBLC) AND ARRANGE A SIMILAR INSTRUMENT TO ONE'S SUPPLIER. BUT IT REQUIRES A BIT OF PREPARATION, AND THE DISCOUNTING PROCESS WILL LEAVE THE TRADER WITH SOMEWHAT LESS THAN THE ORIGINAL INSTRUMENT.
HERE ARE SOME OF THE USES OF SBLC39S:
- Support the payment of financial obligations or contractual agreement
- Optimize cash flow and liquidity
- Maintain capital for other personal or business needs
- Erase the establishment of new business relationships
- Free up company funds which might otherwise be tied up as deposits.
- Enhance your credit position
- Take advantage of business opportunities that might otherwise be missed
- Serve in lieu of bid and performance bonds
- To support advance payment and payment guarantees
- In lieu of cash or security deposits for lease agreements
At Global Project Funding Center, we are skilled at providing sblc's where in you are not required to put up the underlying capital. Such instruments are called credit enhancement instruments.
Standby Letters of Credit (SBLC's) can support many personal and business transactions and can increase your ability to engage in business contracts with third parties. If you can issue an SBLC without typing up the capital that would normally back its issuance, you will have a competitive advantage.
Bank guarantees and performance bonds are structured similarly, and we can provide instruments under those formats.