Understanding SBLC/SLOC Financing
What is SBLC Financing?
SBLC financing is the process of using sblc to obtain loan or financing from a bank. SBLC/SLOC financing can also be described as the process of converting a standby letter of credit (sblc sloc) into cash.
Kingrise Finance Limited is the world’s leader in SBLC Financing. We serve lots of businesses in different industries and sectors of the global economy, from small enterprises and mid-market companies to large multinationals, in developed and developing markets around the world. We provide the services and expertise that businesses need to thrive. Our role is to bridge any gaps and support our customers to make outbound business easier for them.
Opportunities in BG SBLC Financing: We have a particular focus on companies that aspire to grow internationally and use our global connections and expertise to spot trends in world trade and identify opportunities for our customers. So we typically look for people with an international mindset, who are curious about how business works in different markets.
We have two areas of particular expertise:
- Global Trade and Receivables Finance. We provide the services and financing that exporters and importers need throughout the trade cycle, from the tender process and issuance of a payment order to shipment and sales fulfilment. We cover all industries and specialised financing such as commodities, offering more than 100 trade and receivables products that help customers seize growth opportunities while meeting their working capital, trade risk, supplier and sales finance needs.
- Markets. Our markets business is one of its kind in the world. We specialise in foreign exchange, credits and rates, structured derivatives, equities and debt, equity and equity-linked capital markets
What is a Standby Letter of Credit (SBLC/SLOC)?
A standby letter of credit (SBLC or SLOC) is a guarantee of payment by a bank on behalf of their client. It is a loan of last resort in which the bank fulfills payment obligations by the end of the contract if their client cannot.
Standby Letter of Credit (SBLC / SLOC) is a Bank financial instrument that is issued by banks and some other financial institutions.
Standby Letter of Credit (SBLC / SLOC) is used to obtain loan and financing from banks, they are also used for trade financing, foreign exchange as well as import and export transactions.
A standby letter of credit helps facilitate international trade between companies that don’t know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller certain to receive payment, a SBLC/SLOC doesn’t guarantee the buyer will be happy with the goods. A standby letter of credit can be abbreviated either as SBLC or SLOC.
Types of Standby Letter of Credit (SBLC/SLOC):
Financial standby LOC: An exporter sells goods to a foreign buyer, who promises to pay within 60 days. If the payment never arrives (and the exporter required the buyer to use a standby letter of credit) the exporter can collect payment from the importer’s bank. Before issuing the letter of credit, the bank typically evaluates the importer’s credit and determines that the importer will repay the bank. But if the customer’s credit is in question, banks may require collateral (or funds on deposit) for approval.
Performance standby LOC: A contractor agrees to complete a construction project within a certain timeframe. When the deadline arrives, the project is not complete. With a standby letter of credit in place, the contractor’s customer can demand payment from the contractor’s bank. That payment functions as a penalty to encourage on-time completion, funding to bring in another contractor to take over mid-project, or compensation for the headaches of dealing with problems. This is an example of a “performance” standby letter of credit, and a failure to perform triggers the payment.
Advantages of a Standby Letter of Credit (SBLC / SLOC)
The SBLC / SLOC is often seen in contracts involving international trade, which tend to involve a large commitment of money and have added risks.
For the business that is presented with a SLOC, the greatest advantage is the potential ease of getting out of that worst-case scenario. If an agreement calls for payment within 30 days of delivery and the payment is not made, the seller can present the SLOC to the buyer’s bank for payment. Thus, the seller is guaranteed to be paid. Another advantage for the seller is that the SBLC reduces the risk of the production order being changed or canceled by the buyer.
An SBLC helps ensure that the buyer will receive the goods or service that’s outlined in the document. For example, if a contract calls for the construction of a building and the builder fails to deliver, the client presents the SLOC to the bank to be made whole. Another advantage when involved in global trade, a buyer has an increased certainty that the goods will be delivered from the seller.
Also, small businesses can have difficulty competing against bigger and better-known rivals. An SBLC can add credibility to its bid for a project and can oftentimes help avoid an upfront payment to the seller.
SBLC Monetization- How to Monetize BG SBLC:
BG SBLC Monetization or monetisation is the process of converting a bg/sblc into money or legal tender.
Kingrise Finance Limited are monetizers of bank instruments, we monetize bg sblc. We issue BG SBLC from prime banks and we offer 80% LTV which is the best rate in the industry.
Cost of SBLC:
The cost of standby of letter of credit (SBLC) is between 1-10% of the SBLC face value / amount. At Kingrise Finance Limited, our sblc leasing fee is just 4% of the sblc amount. This fee is charged per year that the letter of credit is in effect. If the terms of the contract are fulfilled early, you can cancel the sblc without incurring additional charges.
Please note that Standby Letter of Credit (SBLC/SLOC) is different from Letter of Credit (LC).
CLICK HERE TO LEARN MORE ABOUT DIFFERENCE BETWEEN STANDBY LETTER OF CREDIT AND LETTER OF CREDIT.
SBLC funding process: How to Obtain a Standby Letter of Credit (SBLC / SLOC)
The standby letter of credit process is similar to that of obtaining a commercial loan and business financing, with a few key differences.
The Easiest and Best Way To Obtain or process a bank Guarantee, standby letter of credit (SBLC / SLOC) Is To Contact Kingrise Finance Limited. Kingrise Finance Limited was incorporated in Hong Kong on 22-SEP-1999 as a Government Licensed Money Lender with CR No.: 0689078. We are the world’s leading providers of Business Loan, SME Loans, Project Financing, Bank Guarantees, Letter of Credit, SBLC and other financial instruments.
Our bg/sblc issuance and monetization process is simple, fast and efficient and we offer the best rates as well as the best LTV in the industry. Our BG/SBLC LTV is 80% while our loan interest rate is 3% annually, these are the best offers you can get anywhere.
Our bank instruments: Bank Guarantee (BG), Standby Letter of Credit (SBLC/SLOC), Letters of Credit, CD, BD, DLC, BCL, LTN, MTN, SBLC, SLOC etc are issued by some of the worlds biggest banks such as Barclays Bank London, Standard Chattered Bank, HSBC Hong Kong or any rated AAA bank of your choice.
All our financial instruments are Cash-Backed so they can be used as collateral to secure loan and financing for projects, enter Private Placement Programs (PPP) as well as bg sblc discounting & monetization.
SLOC SBLC Description:
1. Bank Instrument Type: Cash Backed 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, Deutsche 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.
Why Choose Us?
- Fast Turnaround
- Best Top Rated Banks
- Competitive Low rates
- No prepayment penalty
- 2 Days for Commitment
- Extremely Satisfied Clients
- WE KEEP OUR PROMISE
- 20 Years of Experience & Trust
- No Personal Collateral Required
- Solutions for every customer & every industry.
- Loan amounts from $1 million to over $500 million
- Fast Approvals & Fast Funding- Closing in as little as 5 days
BROKERS: We welcome new brokers who are direct to their clients. New brokers are welcomed and are rewarded with 2% commission on every deal they bring to us.
Kindly contact Us today for all your business financing needs, including business loan, sme Loans, project financing, Lease bg, Lease sblc, Bank Guarantee Provider