Choosing the Right SBLC Provider for Your Business
Selecting the right Standby Letter of Credit (SBLC) provider is crucial for your business. It largely depends on your business needs and how strong you are financially. If your business has a high turnover and a good credit history with your bank, it’s often better to go with local banks for issuing an SBLC.
Collateralized SBLC
When dealing with most banks, they will ask you to have 100% collateral to back up the Letter of Credit. This means you need to secure the credit with assets or cash equivalent to the value of the credit.
Be mindful that banks will also charge extra fees for using the Letter of Credit, usually between 2% & 6% annually, plus some initial issuing charges.
Knowing these costs is important to use SBLC effectively for your business needs.
Unsecured SBLC
In some rare situations, if you don’t have enough collateral, a bank might still issue an unsecured LC if they think the transaction is low risk.
In case the bank insists on collateral and you don’t have it, you will need to find a third party to provide it.
It’s crucial to understand these aspects to avoid any unforeseen complications in your business transactions.
Unanswered Questions? We’re here to help!
We want to know your needs exactly so that we can provide the perfect solution. Let us know what you want and we’ll do our best to help.
About Us
Popular Services
Contact Information
For inquiries prior to submitting a Request for Quote (RFQ), please schedule a 45-minute consultation.
Financely connects growth-oriented businesses with investors seeking premium opportunities, effectively bridging the gap between capital demand and supply. While we are not a securities broker or dealer, we collaborate with investment banks, legal counsel, and other professionals as needed. We do not offer to buy or sell securities and disclaim liability for capital-raising results.
Accepted Payment Methods
A $20,000 USD limit applies to PayPal & Card payments.
Financely Inc. is a corporate finance consulting firm wholly owned by Aurora Bay Trust, a Bahamas established Trust or its relevant authorised affiliates. Our advisory business is carried out through Financely Group LLC. We do not operate as a securities broker/dealer. Please read our terms of service to determine if working with Financely Group is appropriate for you. Pursuant to the Dodd-Frank Act, we operate as an exempt
foreign private adviser in the United States.