- Instrument
- Standby Letter of Credit (SBLC)
- Purpose
- Payment security under a supply contract
- Applicant
- Your company
- Beneficiary
- Overseas supplier
- Amount
- As the contract requires
- Issued through
- Partner bank in our network
Bank instruments, arranged for your deal.
Bank guarantees, SBLCs, documentary credits and comfort letters, sourced through our network of international banks.
Four instruments, each built for a different promise.
Choose an instrument to see what it does, where it is used and how it pays.
Bank Guarantee
- What it is
- A bank's written promise to pay the beneficiary if your company does not meet an agreed obligation.
- Typically used for
- Tender (bid) bonds, performance guarantees, advance payment guarantees.
- What it gives the other side
- Confidence that a bank stands behind your commitment.
- How it pays
- On a demand that complies with the guarantee's terms.
- Common rules
- ICC URDG 758, or governing law named in the guarantee.
Standby Letter of Credit
- What it is
- A credit the bank pays only if you do not. A safety net behind your payment or performance.
- Typically used for
- Securing payment under supply contracts, leases and credit facilities.
- What it gives the other side
- A bank-backed fallback if the deal goes wrong.
- How it pays
- On presentation of a statement of default and any documents the credit names.
- Common rules
- ISP98 or UCP 600.
Documentary Letter of Credit
- What it is
- The bank pays the seller once the shipping and trade documents set out in the credit are presented and match its terms.
- Typically used for
- Importing and exporting goods, especially with new trading partners.
- What it gives the other side
- The seller is paid by a bank, the buyer pays only against the right documents.
- How it pays
- Against a complying presentation of documents.
- Common rules
- ICC UCP 600.
Comfort Letter
- What it is
- A letter from a bank supporting your company's standing or a proposed facility, without a formal promise to pay.
- Typically used for
- Tenders and negotiations that ask for evidence of financial standing, and onboarding with new suppliers.
- What it gives the other side
- Reassurance from a bank about who they are dealing with.
- How it pays
- It does not. It is reassurance, not a payment instrument.
- Common rules
- Set by the letter's own wording.
When the right instrument makes the difference.
-
An international trade deal
Your supplier wants to know they will be paid. You want to pay only when the goods are on their way.
-
A tender
The buyer asks for a bid bond, or proof that you have the financial standing to deliver.
-
Securing a contract
The other party needs a performance or advance payment guarantee before signing.
-
Financial assurance to a partner
A new partner wants a bank behind your word before committing.
How we arrange it.
-
Tell us the transaction
The instrument you need, the amount, the beneficiary and the deadline you are working to.
-
We approach the network
We take your requirement to the banks and financial institutions best placed to issue it.
-
You review the terms
Wording, fees and conditions come back to you to agree before anything is committed.
-
The instrument is issued
Once the issuing bank completes its checks, the instrument is sent to the beneficiary's bank.
One contact. A network of banks behind it.
Your own bank may not issue the instrument you need, on the terms or in the timeframe you need it. We work across international banks and financial institutions to find the one that will, and shape the solution around your transaction rather than a standard product.
- Domestic and international. Instruments for deals at home and across borders.
- Tailored to the deal. Wording and structure matched to what your counterparty is asking for.
- One point of contact. We handle the bank conversations so you can stay on the deal.
Questions we are often asked.
What is the difference between a bank guarantee and an SBLC?
Both are a bank's promise to pay if your company does not meet an obligation. A bank guarantee is usually written for a specific obligation, such as a tender or performance bond. An SBLC is structured as a letter of credit and is often preferred in international trade and in jurisdictions where standby credits are the norm.
How is a documentary letter of credit different from a standby?
A documentary credit is the normal way the seller gets paid: the bank pays when the right shipping documents are presented. A standby is a fallback that is only drawn if something goes wrong.
Is a comfort letter legally binding?
Generally not in the way a guarantee is. A comfort letter offers reassurance about your standing but does not normally commit the bank to pay. Its exact effect depends on its wording.
What information do you need to get started?
The instrument type, approximate amount and currency, who the beneficiary is, what the instrument is for and when you need it. Supporting contract or tender documents help us move faster.
Does every request result in an instrument being issued?
No. Every instrument is issued by a bank or financial institution, subject to its own approval and due diligence. We work to find the right issuer for your transaction, and we will tell you plainly if a request is unlikely to be met.
Start your request.
Tell us about the transaction and we will come back to you to discuss the instrument and the next steps.
- Email to be confirmed
- Phone to be confirmed
- Office address to be confirmed