Import export plays a major role in the today’ market. SMEs are actively involving in importing goods from overseas and supplying it to the local market. Are you the one looking to import goods from your overseas supplier or local supplier? But you can’t able to start your import-export, as you don’t have enough money in hand? Bronze Wing Trading, the SBLC Providers in Dubai are here to provide you the right solution which will help you to import goods on a credit basis. And the solution is using Standby Letter of Credit as a payment term.
What is Standby Letter of Credit?
Standby Letter of Credit or SBLC MT760 is the written undertaking issued by a bank on behalf of buyers to assure the suppliers that the buyer will make the payment for the supplied goods within the credit period without any default. By providing the SBLC, the bank will also promise the supplier that in case of any default in making the payment, then the bank will undertake the buyer’s payment commitment and will be liable to make the payment to the supplier as agreed the signed contract. How SBLC Helps Importers? When a buyer asks for the supplier to supply the goods on a credit basis, the supplier may ask the buyer to provide payment guarantee. And this guarantee assures the supplier that the buyer will make the payment for the supplied goods within the credit period. And this payment guarantee is called Standby Letter of Credit.
As banks acts as a guarantor, the supplier will be more likely agree to supply the goods on a credit basis. Also, having SBLC in hand proves the buyer’s creditworthiness and also shows his repayment abilities. So, the supplier can rest assured that they will receive their payment as per the due date stated in the issued SBLC.
How to Get Standby Letter of Credit? If you’re looking to avail SBLC MT760 for your upcoming trade deal, then you can submit your requirements to us. Our team will study your request and get back to you with a Free Quote. Comments are closed.
|