standby letter of credit is better than bank guarantee

Standby letters of credit and bank guarantees are both methods of providing assurance to a vendor of payment on credit. They are often used for international trade transactions where the financial risk is high. A bank guarantee is a commitment by a bank to pay its client's obligation up to a certain amount, while standby letter of credit is a more formal document that details the obligations of both parties.

Standby Letter of Credit

A standby letter of credit serves as a secondary payment method for a bank's client should the client fail to pay the vendor an agreed-upon amount. Neither party expects to draw upon an SBLC. Indeed, doing so can damage the creditworthiness of the bank client. To execute an SBLC, both parties agree to the terms of a transaction. If the vendor requests an SBLC, the buyer applies to his bank, who approves it upon the buyer's credit rating. Thus, the risk assumed for payment is transferred from the vendor to the issuing bank. We already discussed SBLC on this article: https://kingrise.finance.blog/2020/03/31/what-is-standby-letter-of-credit-sblc

Bank Guarantee

A bank guarantee acts similarly to a line of credit, except that a line of credit can be drawn upon at will by the bank's client. A bank guarantee is used only if the client does not pay its vendor an agreed-upon amount. U.S. credit institutions are forbidden from assuming guarantee obligations, and therefore most international transactions require a standby letter of credit. We already discussed BG on this article: https://kingrise.finance.blog/2020/04/14/what-is-bank-guarantee/

Kingrise Finance Limited was incorporated in Hong Kong on September 22, 1999 and is a leading provider of Standby Letter of Credit (SBLC), Bank Guarantee (BG), business loans, international project funding, Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee etc. Our bank instruments are issued from prime banks such as HSBC Hong Kong, Barclays Bank London, Standard Chattered Bank or any AAA rated bank of your choice.

All our bank instruments are cash backed and can be used for Discounting, Monetization and Private Placement Programs (PPP). They also can be used as collateral against a loan or credit line to secure Funding for Projects.

Bank Instrument Description:
1. Bank Instrument Type: Cash Backed Bank Guarantee {BG} / Standby letter of Credit (SBLC)
2. Face Value: USD/EUR 1Million (Minimum) to USD/EUR 50 Billion (Maximum)
3. Issuing Bank: Barclays Bank London, HSBC Hong Kong, Citibank New York, Deutsch Bank Germany or any prime bank.
4. Age: One Year and One Day (with rolls and extensions where applicable)
5. Leasing Price: 4% of Face Value plus 2% brokers commission (Applicable only if there are brokers in the transaction)
6. Delivery: SWIFT MT-760
7. Payment: MT103 Swift Wire Transfer
8. Hard Copy: Bank Bonded Courier within 7 banking days.

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BROKERS WANTED: We welcome brokers who are direct to the client. New brokers are welcomed and are rewarded with 2% commission on every deal they bring to us, but you must be direct to the client and not in broker chains. We do not get involved with daisy chain of brokers, neither do we tolerate scammers, jokers and time wasters.

We would welcome the chance to earn your trust and deliver you the best service in the industry. If you are interested to work with us kindly contact us immediately with below contact details:
Email: info@kingrisefinance.com
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