SBLC (Standby Letter of Credit)
A Standby Letter of Credit is commonly used as a bank undertaking that supports contractual performance and conditional payment assurance. The exact structure and wording must match the underlying commercial purpose and the issuing bank’s acceptable format.
What SBLC is used for
- Conditional assurance in commercial relationships where one party requires additional comfort.
- Support for obligations where the beneficiary expects a bank undertaking under defined triggers.
- Structured trade finance workflows that require a standby commitment rather than direct documentary payment.
SBLC issuance is always performed by the issuing bank. Our role is to support preparation, coordination, and bank-aligned execution.
Key parameters
| Parameter | Why it matters |
|---|---|
| Amount & currency | Must match the underlying obligation and be consistent with the requested format. |
| Tenor / validity | Bank acceptance depends on realistic validity and clear expiry mechanics. |
| Beneficiary details | Accurate legal name and address reduces compliance friction. |
| Wording / conditions | Triggers must be clear, non-contradictory, and aligned with standard issuance practice. |
| Governing law / jurisdiction | Must be compatible with the issuing side’s policy and the commercial contract. |
How we support an SBLC request
Disciplined steps, no shortcuts.
1
Scope definition
Clarify purpose, beneficiary structure, and expected conditions.
2
Document readiness
Support creation of a coherent package aligned with bank checks.
3
Process coordination
Coordinate communication and provide execution support through issuance review.