What is sblc, cost of sblc, sblc providers, difference between lc and sblc, sblc mt760

What is sblc, cost of sblc, sblc providers, difference between lc and sblc, sblc mt760
What is sblc, cost of sblc, sblc providers, difference between lc and sblc, sblc mt760

Kingrise Finance Limited was incorporated in Hong Kong on 22-SEP-1999 as a Government Licensed Money Lender with CR No.: 0689078. We are licensed by the Hong Kong Government under the Money Lenders Ordinance to provide Business Loan, SME Loans, Project Financing, Recourse Loan, Non Recourse Loans and Bank Financial Instruments such as Standby Letter of Credit, Bank Guarantee, Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee, Bank Comfort Letter, Letters of credit etc.

We have been providing these financial services to our numerous customers from all over the world including importers, exporters as well as customers that need credit enhancements or trade finance facilities to execute projects locally or internationally.

Our loan interest rate is just 3% annually and you can get loan financing from us with or without security or collateral. The loan term is up to 30 years with a grace period up to 3 years for those in the construction industry.

Our bank instruments, bg and sblc/sloc are issued from prime banks such as Barclays Bank London, Standard Chartered Bank, HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP).

In our last article we talked about different types of bank instruments such as bank guarantees and letters of credit. But today we will be discussing Standby Letter of Credit (SBLC):

What is sblc, cost of sblc, sblc providers, difference between lc and sblc, sblc mt760So What is StandBy Letter of Credit (SBLC or SLOC)?

A standby letter of credit (SBLC/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.
A standby letter of credit can also be abbreviated SBLC or SLOC. A standby letter of credit is different from a bank guarantee.

Please be aware that Standby Letter of Credit is different from a Bank Guarantee. Please click here to read the difference between Bank Guarantee (BG) and Standby Letter of Credit (SBLC/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)

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 often times help avoid an upfront payment to the seller.

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/SBLC, 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.

 Uses of SBLC / SLOC 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 SLOC doesn’t guarantee the buyer will be happy with the goods.   A standby letter of credit is most often sought by a business to help it obtain a contract. The contract is a “standby” agreement because the bank will have to pay only in a worst-case scenario. Although an sblc/sloc guarantees payment to a seller, the agreement must be followed exactly. For example, a delay in shipping or a misspelling a company’s name can lead to the bank refusing to make the payment.There are two main types of standby letters of credit:A financial sblc/sloc guarantees payment for goods or services as specified by an agreement. An oil refining company, for example, might arrange for such a letter to reassure a seller of crude oil that it can pay for a huge delivery of crude oil.Standby letters of credit can help establish trust with your business partners and be a powerful tool to help meet your business goals.

The Difference Between Letter of Credit (LC) and Standby Letter of Credit (SBLC). Please note that Standby Letter of Credit (SBLC) is different from Letter of Credit (LC).
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the counterparty risk of the buyer paying the seller for goods

The major difference: The ‘Letter of Credit’ and the ‘StandBy Letter of Credit’ are two legal bank documents that are used by international traders. Both these letters are used to ensure the financial safety between the supplier and their buyers. And, SBLC is a type of LC that is used when there is a contingent upon the performance of the buyer and this letter is available with the seller to prove the buyer’s non-performance during the sale.

LC and SBLC are the two financial instruments that are meant to safeguard the financial interests of the international traders i.e. buyers and sellers. It simply means that both these terms are widely useful while making transaction between the two trading parties. These help in giving financial security to both the parties. Also, these contracts are produced in good faith and in both the cases the fund gets mobilized.

Genuine SBLC Provider- Lease BG/SBLC Providers | Kingrise Finance Limited
Genuine SBLC Provider- Lease BG/SBLC Providers | Kingrise Finance Limited

Cost of SBLC

Standby letter of credit costs between 1-10% of the SBLC/SLOC amount before issuing the sblc/sloc. This fee is usually charged per year that the letter of credit is in effect. If the sblc/sloc is needed for more than one year, there will be an option of rolls and extensions where applicable. If the terms of the contract are fulfilled early, you can cancel the SLOC/SLBC without incurring additional charges.

What is SBLC funding or SBLC Financing?  SBLC financing or SBLC funding 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 or legal tender.

What is the LTV (Loan To Value) of a Standby Letter of Credit (SBLC)? At Kingrise Finance Limited, we offer the best rates in the industry. All our standby letters of credit (SBLC) are issued from prime banks and our SBLC LTV is 80% which you cannot get elsewhere. So why go elsewhere?

DESCRIPTION OF BUY/PURCHASE BANK INSTRUMENT (BG/SBLC/SLOC)

1. Instrument:                BG (Bank Guarantee) Standby Letter of Credit (SBLC), cash-backed, 
2. Total Face Value:          Eur/USD 2 Million (Min) to Eur/USD 500m (Max)
3. Issuing Bank:              HSBC Hong Kong, Barclays Bank London, Deutsch Bank AG, Frankfurt  or any AA Rated Bank.
4. Term / Age:                One (1) Year and One (1) day, Fresh Cut
5. Invoice Price:              45% Net and 47% Gross of the face value of each BG/SBLC to the Seller, including 2% consultancy fees as per IMFPA.

6. Consultation Fee:       In total of 2%, which is to be split and paid to the consultants as follows:

                                       1% to …(Seller’s Mandate).., paid by the Seller/Payer-1

                                       1% to ………………………, paid by the Buyer/Payer-2 7. Delivery of instrument:          Bank-To-Bank by SWIFT MT-760, as per the Schedule of Delivery of Buy-Sell Agreement

8. Payment for instruments:                   By SWIFT MT-103 wire transfer
9. Original Hard Copy:                 By bonded courier to Buyer’s designated Depository Bank within Seven (7) bank working days after receipt of BG/SBLC(s) settlement payment by SWIFT MT-103 into the Seller’s account.

BELOW IS THE DESCRIPTION OF LEASE BANK INSTRUMENTS (BG/SBLC/SLOC)

1. Instrument:               Fully Cash Backed Bank Guarantee {BG} or StandBy Letter of Credit {SBLC}
2. Total Face Value:       USD 2Million (Min) to USD 500m (Max)
3. Issuing Bank:             HSBC Hong Kong, Barclays Bank London or any prime Bank.
4. Age:                        One Year and  One Day (with rolls and extensions where applicable) 
5. Leasing Price:            4%  (+ 2% brokers commission where applicable) 2% broker commission applies to clients that were introduced by brokers
6. Delivery:                   SWIFT MT-760
7. Payment:                  MT103  Wire Transfer
8. Hard Copy:                Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument

What Is The SBLC Process? Terms and Procedure for SBLC

Below is the normal procedure for Standby Letter of Credit (SBLC).

Step 1: Application is made to KINGRISE FINANCE LIMITED for opening of a SBLC including but not limited to the following:

1. SBLC application form. (Provided by KINGRISE FINANCE LIMITED upon request)

2. Desired verbiage of SBLC. (If none provided, KINGRISE FINANCE LIMITED will provide its normal SBLC / letter of credit verbiage.

3. SWIFT code and address of beneficiary bank.

4. Know Your Customer (KYC) documents including but not limited to: Passport copy of applicant, proof of address documents such as electricity or water bill, articles of incorporation of applicant company and brief summary, executive summary and/or business plan of underlying transaction.

Step 2: KINGRISE FINANCE LIMITED reviews all documents presented and evaluates acceptability of documents. KINGRISE FINANCE LIMITED then either approves application or denies and shall inform the applicant of such decision.

Step 3: KINGRISE FINANCE LIMITED prepares draft of the SBLC as it is comfortable to issue and forwards to client for approval. All drafts shall be in line with rules and regulations governing the issuance of SBLC.

Step 4: The client approves the draft and:

1. Signs a contract agreeing to the terms and conditions of issuance and issuance charges as negotiated.

2. KINGRISE FINANCE LIMITED issues the invoice for the agreed upon charges.

Step 5: Client makes payment of charges as per agreed upon payment structure.

1. Client shall provide TT/Wire copy of payment made to KINGRISE FINANCE LIMITED account.

2. KINGRISE FINANCE LIMITED shall confirm to client credit of funds upon receipt of funds to KINGRISE FINANCE LIMITED account.

Step 6: KINGRISE FINANCE LIMITED uploads draft to SWIFT system and provides copy to applicant for final approval of message. Upon approval given by applicant KINGRISE FINANCE LIMITED then releases the SWIFT to beneficiary bank coordinates.

Step 7: Copies of released SWIFT are then forwarded to the client via email or hard copy as requested. In case the client is represented by an advisor, then it is forwarded to the advisor only.

Step 8: Any amendments to SBLC are subject to approval of KINGRISE FINANCE LIMITED.

Why Do Some SBLC Transactions? Most SBLC transactions fail because of GREED and unworkable procedures.
These are the top 7 reasons why many bank instrument transactions fail.

1. Free SBLC Without Upfront Fees – Many people are under the false illusion that they can close a BG or SBLC transaction free of charge without spending any money upfront. They want the Funder or bank instrument provider to pay the upfront fees so that they can complete the financial transaction for FREE, taking no risk and investing none of their own money. These type of free deals do not exist in the real world, if they did there won’t be any poor man in the world today. Banks have NEVER sent multimillion dollar assets to customers for FREE and then hope the customer pays them later. This is the number one reason why many SBLC transactions fail.

2. Customers Procedure: Every week we receive sblc inquiries from people who say they want SBLC to be issued according to their own terms and conditions. Obviously this is not POSSIBLE; Banks do not work according to a borrowers terms. If you need SBLC or any financial instrument for that matter then you have to follow the bank or sblc providers laid down rules and procedures. This is the second reason why many sblc deals fail.

3. Price Shoppers – People are lured by fake artificially low sblc prices offered by scammers. The simple truth is, when a scammer is not delivering anything real they can afford to offer you the deal of the century. So when it sounds too good to be true then be careful. Price Shopping is the third reason why sblc transactions fail.

4. Greedy Million Billion Gang: Offers that set forth tranches of $1b, $5b, $20b and more, are just pure nonsense. Every week we receive offers from people who claim they need 70 BILLION Dollar SBLC or more. Truth is that most people who troll the internet with multi billion dollar SBLC requests do not have any money in their bank account to close the deal. Greed and Ignorance will make you lose your sense of reasoning. Many people don’t want to hear these things because truth hurts but we will keep saying the truth regardless. 

5. Bank Endorsed Deed of Agreement (DOA): Banks do not endorse SBLC deed of agreement contracts or LOI. This action would place a financial liability on the bank and they cannot and will not incur that liability on behalf of their depositors. So if you received any offer or document from anyone claiming it has been endorsed by the bank kindly run for your life because it is FAKE.

6.  BPU (Bank Payment Undertaken): Banks do not issue BPU to enable a customer to get a financial instrument without paying upfront fee. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well contact your banker and ask questions. I am a seasoned banker that has worked with some of the world’s biggest banks such as HSBC, Barclays etc so I know.

7. ICBPO MYTH: ICBPO means Irrevocable Conditional Bank Pay Order. Banks do not issue irrevocable conditional bank purchase orders (ICBPO), or any purchase orders, period. Many joker brokers and uninformed clients think they can close a deal with ICBPO. ICBPO is banned and illegal. In fact, a bank is precluded from incurring any liability on behalf of a depositor. And, the words “irrevocable conditional” form an oxymoron. No western world bank will issue a MT543, as it is a liability on behalf of the bank. In fact, as of September 1, 2003, the MT543 is gone from the banking world. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well contact your banker and ask questions. 

What is sblc, cost of sblc, sblc providers, difference between lc and sblc, sblc mt760, sblc monetization, sblc discounting, Standby Letter of Credit provider, Genuine BG SBLC Providers, hsbc sblc, barclays bank sblc
Genuine BG SBLC Providers, hsbc sblc

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 funding needs, including business loan, sme Loans, project financing, bank instruments (Bank Guarantee, Standby Letter of Credit, Letter of Credit) | BG|CD|BD|DLC|BCL|SBLC|SLOC.

Website: http://www.kingrisefinance.com
Email: info@kingrisefinance.com

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