Being a direct SBLC Provider in Dubai, we support importers and exporters. We issue Standby Letters of Credit and SBLC MT760 for trade deals. This helps both parties complete transactions with confidence.
To avail SBLC from us, follow this simple process:
A Sugar Importer in Dubai required a trade finance facility to close their Sugar import deal with their Brazilian Supplier. We facilitated the required Standby LC by extending our bank facility, subject to a client undertaking and agreed terms. With the issued SBLC MT760, the deal concluded successfully within 48hrs.
USD 4,000,000
SBLC MT760
Sugar/Commodities
Import Transaction
We are committed to meet our clients’ needs on time. That’s why Bronze Wing Trading provides trade finance services to support eligible international transactions.
A bank issues a Standby Letter of Credit (SBLC) on behalf of its client. It assures payment to the seller if the buyer defaults. An SBLC acts as a payment backup when the client fails to meet contract terms.
A Standby Letter of Credit certifies the buyer’s creditworthiness and payment strength. It also helps facilitate global trade between companies that don’t know each other and operate under different rules and regulations, which is exactly why traders often prefer this instrument, it offers the payment guarantee they need to trade with confidence.
MT760 can also be used as Collateral for Credit Enhancement, helping traders expand their business without giving up their cash funds. Holding an SBLC improves a company’s cash flow and is seen as a sign of good faith. It also allows traders to keep using their cash capital for other dealings before payments actually come due.
Looking to get a Standby LC for your domestic purchase? Contact Bronze Wing Trading L.L.C., SBLC Provider in Dubai. We can extend our bank facilities from European Banks and issue the required MT760, subject to a client undertaking and agreed terms.
A Standby LC adds a safety net to both local and global transactions by assuring payment for completed services or supplied goods. With this kind of agreement in place, the bank guarantees payment to the seller if anything unforeseen happens. The SBLC itself outlines the specific situations that could trigger the bank’s payment.
For Instance
A seller supplies goods to a buyer who promises payment within 30 days of shipment. If that payment never arrives, the seller can claim the SBLC with the buyer’s bank to get the payment released.
Since the buyer’s bank takes on the responsibility of paying the seller in case of default, it typically evaluates the buyer’s creditworthiness and repayment ability before issuing the Standby LC. If the buyer’s credit score is low, the bank may require collateral or funds on deposit to proceed. If that requirement can’t be met, the bank won’t move forward with the SBLC request.
When a buyer and seller agree to use a Standby LC as their payment term, the buyer opens the Standby LC in favor of the supplier through their bank. By issuing it in favor of the supplier and on behalf of the buyer, the bank guarantees payment, even if the company closes down, declares bankruptcy, or is otherwise unable to pay for the goods or services provided.
If the buyer defaults, the seller presents all the documents mentioned in the issued SBLC to their bank. The bank verifies these documents, and once everything complies with the agreed terms, it pays the seller’s bank the amount due.
The biggest advantage of holding an SBLC is the security it offers in a worst case scenario. For example, if a contract calls for payment within 60 days of delivery and that payment doesn’t come through, the seller can present the SBLC to the buyer’s bank for payment. This guarantees the seller gets paid and significantly reduces the risk of the buyer changing or canceling the order midway.
Standby LC offers a range of benefits for both importers and exporters, here’s a look at what it brings to the table:
1. Applicant — The buyer who requests their bank to issue the SBLC in favour of their supplier.
2.Issuing Bank — The bank that issues the MT760 on behalf of its client.
3.Beneficiary — The SBLC recipient, or the supplier who receives the SBLC in their favor.
4. Advising Bank — Maintains a relationship with the issuing bank and receives the SBLC to advise it forward to the seller’s bank.
5.Seller’s Bank — The seller’s bank, where the supplier ultimately receives the final SBLC.
Yes, a Standby LC can be transferable, provided it’s subject to the agreed terms. It’s actually one of the most common questions our clients ask before availing the MT760. Much like other bank instruments, such as cheques or promissory notes, that can be transferred in good faith, MT760 can also be transferred in favor of a second SBLC recipient. This does require a written request from the first SBLC recipient, along with approval from the issuing bank.
Generally, the applicant, or buyer, bears the cost of issuing an SBLC. This typically includes bank commission, processing fees, and transmission fees, all paid by the importer at their bank, as agreed between the buyer and seller. For more details on our tariff, contact us.
Bronze Wing Trading L.L.C., an SBLC Provider in Dubai, extends its facilities to provide SBLC MT760 from European Banks, on behalf of buyers, to give suppliers the payment assurance they need.
Our trade finance experts will structure the SBLC MT760 to fit your requirements and help you conclude your trade deal within 48 working hours.
To avail a Standby Letter of Credit from rated banks, submit your requirements to us, we’ll get back to you as soon as possible.
A standby letter of credit is a bank guarantee of payment that only gets called upon if the buyer fails to fulfil their contractual payment obligation, used as a backup rather than the primary payment method.
MT760 is the SWIFT message format banks use to issue and transmit a standby letter of credit electronically between financial institutions.
Both can provide payment assurance. An SBLC may be subjected to ISP98 or UCP 600 if expressly stated in its terms. The differences depend on each instrument’s wording, applicable rules and governing law.
Yes, an SBLC is often used as collateral to help a business access credit facilities from its own bank.
Costs vary based on the issuing bank, contract value, and duration, and are best confirmed through a consultation based on the specific deal.
