Finding Genuine Standby Letter of Credit (SBLC) Providers

Finding Genuine Standby Letter of Credit (SBLC) Providers

The internet is filled with bank instrument scammers and fake bg sblc providers so everyday many people are searching for ways to find Genuine Standby Letter of Credit (SBLC) Providers. Why are there so many scammers in the bank instrument industry? Since there are many sharks in this industry pretending to be real bg sblc providers, how can I find a genuine Standby Letter of Credit Provider that will not steal my money and run away?

In previous articles I mentioned how challenging it can be to find Genuine sblc providers, but here, I will try to explain more.

NEWS FLASH: Kingrise Finance Limited is Genuine Standby Letter of Credit (SBLC) Provider, top SBLC Provider, real bg sblc provider, genuine providers of bank instruments, SBLC Monetization, How to Obtain a Standby Letter of Credit from a prime AAA rated banks in London, Germany, Europe or USA.

How To Find Genuine Standby Letter of Credit (SBLC) Providers.

1. HISTORY / EXPERIENCE: The best way to know if your sblc provider is real or not is to check how many years they have been in business. For me I will choose a bank instrument provider that has been in business for decades over one that just started a few years ago. Same way I would prefer a medical doctor with 30 years experience over a doctor that has just one or two years experience. History and Experience is everything.

2. Background Check: Run background checks on the company to make sure that they are real.

3. INCORPORATION: Check if it is a legally registered company or fake one. Ask for their incorporation certificate.

URGENT NOTICE: It might interest you to know that there are only 10 genuine sblc providers in the world and Kingrise Finance Limited is number one. Contact us if you want to know the list of genuine sblc providers in the world and we will be glad to share that information with you.

So if you are in the market for SBLC (Standby Letter OF Credit) or Bank Guarantee (BG) then make sure you use a reputable Financial Services Provider with decades of experience like Kingrise Finance Limited, the benefits of following this approach is to give you peace of mind that your interest would be protected and you surely would be getting the best deal.

It is important to understand that banks do not advertise SBLC’s as part of their everyday banking products, the true reason behind this is that banks are not allowed to advertise SBLC. Standby Letters of Credit (SBLC) are provided by high net worth clients with a large cash holding in a bank account. These high net worth clients usually have investment portfolios which include hedge funds, private equity, pension funds etc and these individuals can be truly hard to get in touch with, either because they choose to remain anonymous or they are just straight-up busy individuals.

In order to be sure these genuine providers are dealing with serious prospective buyers of their bank instrument they usually undertake serious checks and balances, this task is usually assigned to reputable Financial Services Providers such as Kingrise Finance Limited. These Financial Services providers such as Kingrise Finance Limited are given the responsibility of making sure a strict screening process is adhered to and only prospective buyers who meet the necessary criteria are allowed access to the Genuine Provider.

What is Standby Letter of Credit (SBLC)?

Standby Letter of Credit (SBLC) meaning

A Standby Letter of Credit (SBLC) is a legal document that guarantees a bank’s commitment of payment to a seller in the event that the buyer–or the bank’s client–defaults on the agreement. Although the buyer is certain to receive the goods and the seller certain to receive payment, a Standby Letter of Credit (SBLC) doesn’t guarantee the buyer will be happy with the goods. A standby letter of credit can also be abbreviated SBLC or SLOC.

Different Types of a 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.

The Difference Between Letter of Credit (LC/DLC) and Standby Letter of Credit (SBLC/SLOC).

Please be informed that Standby Letter of Credit (SBLC/SLOC) is different from Letter of Credit (LC). A letter of credit (LC) 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.

Letters of credit were traditionally governed by internationally recognized rules and procedures rather than by national law. The International Chamber of Commerce oversaw the preparation of the first Uniform Customs and Practice for Documentary Credits (UCP) in 1933, creating a voluntary framework for commercial banks to apply to transactions worldwide.

‘Letter of Credit’ and the ‘StandBy Letter of Credit’ are two legal bank documents that are used by international traders

So What Is 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 transactions 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.

standby letter of credit SBLC uses:

A standby letter of credit helps facilitate international trade between companies that don’t know each other and have different laws and regulations.  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.

SBLC COST:  What are the fees for Standby Letters of Credit? 

At Kingrise Finance Limited, we charge 4% of the SBLC value. In the event that the business meets the contractual obligations prior to the due date, it is possible for an SBLC to be ended with no further charges.

NOTICE: So many customers are looking for ways to get a BG or SBLC free of charge without spending any upfront payments. if you are one of the customers looking for free bg sblc without any advance payments please click here to read our explosive article about free bg sblc without upfront fees.

Also, these are the top 14 reasons why many Standby Letter of Credit (SBLC) transactions fail. Please read that article so you will understand why many people Fail in SBLC Transactions.

What is Standby Letter of Credit (SBLC) Monetization?

Standby Letter of Credit (SBLC) Monetization or monetisation is the process of converting a standby letter of credit into liquidity, cash or legal tender. Normally for top rated bank instruments for leased instruments the LTV for the non-recourse loan is 40–50% and for purchased instruments it is 75–80%.

However, Kingrise Finance Limited can arrange and assist clients to monetize, discount, or arrange a Non Recourse loan against a Standby Letter of Credit (SBLC) issued from prime banks. The Standby Letter of Credit Monetization arrangement issues Non Recourse funds to the Client shortly after the Standby Letter of Credit (SBLC) is delivered to the Monetizer.

Our SBLC monetization rate is 80% LTV which is the best rate in the industry, and above all, all our sblc are issued from top AAA rated banks such as HSBC Hong Kong, Barclays Bank London, Citi Bank New York, Credit Suisse etc. 

Complete End to End Managed Standby Letter of Credit (SBLC) Program – We provide a comprehensive & integrated Standby Letter of Credit (SBLC) Issuing and Monetization Program.

At Kingrise Finance Limited, we offer very simple and straightforward Standby Letter of Credit (SBLC) Monetization settlement method using the Swift Network System.
Bank SWIFT System – We use the Bank SWIFT Network to have the Standby Letter of Credit (SBLC) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.How to use sblc monetization process

The SBLC Monetization Process & Closing Procedure – SWIFT

  1. After execution of the Standby Letter of Credit Monetization contract by both parties, the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
  2. The Monetizers bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
  3. On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Standby Letter of Credit (SBLC) by SWIFT MT760 to the Monetizers bank.
  4. Upon receipt, confirmation and delivery of the SWIFT MT760 the Standby Letter of Credit Monetizer will within maximum four (4) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  5. The Standby Letter of Credit Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

So if you are looking for genuine providers of bank instruments, monetizers of bank instruments, real sblc providers or genuine bank guarantee providers kindly 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 leading providers of 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 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).


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