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Explore alternative funding options and financial solutions. If you are looking to obtain an SBLC or BG either through purchase or lease, you have arrived at your final destination. We are experts at handling issuance of SBLC / BG and we have done it many times over. Investment Bankers, Project Owners, Oil & Gas Traders, Commodity Traders, etc. have successfully obtained SBLC / BGs through us. If you follow our procedure, it is likely that you might obtain an SBLC / BG provided you are financially capable to transact and possess the right business credentials. We do not entertain brokers or intermediaries.

SBLC TRANSACTION PROCEDURE 


Instrument & Service Description
A Bank Guarantee (BG) is the name used mostly in Europe and Standby Letter of Credit (SBLC) is exactly the same, but used in the USA. Since we are working globally you will see the expression BG/SBLC in our documents.
Our Purchased as well as leased BG/SBLCs  are issued by World's rated Top 25 Banks. We use the Bank SWIFT Network to have clients' BG/ SBLC delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760. We operate an extremely reliable, efficient delivery and authentication process.


STEP BY STEP PROCEDURE FOR OBTAINING BG/ SBLC
 
1. BENEFICIARY SUBMITS TO PRINCIPAL A SIGNED BG-SBLC LOI TOGETHER WITH COMPLIANCE DOCUMENTS:
1.1   CLIENT INFORMATION SHEET
(CIS)
1.2   STATEMENT OF NON-SOLICITATION OF FUNDS
1.3    IRREVOCABLE FEE PROTECTION AGREEMENT COVERING ALL IDENTIFIED BENEFICIARIES FOR BOTH SIDES
1.4   CLEAR COLOR COPY OF THE BENEFICIARY SIGNATORY’S PASSPORT
1.5   CERTIFICATE OF INCORPORATION

1.6   PROOF OF FUND (POF). There must be availability of cash funds (not credit line) in the beneficiary's bank account which must be sufficient to cover the price of the first tranche of the Instrument. This can be in the form of a Bank Comfort Letter (BCL) or RWA (Ready, Willing, and Able) Letter issued by the beneficiary's bank and signed by at least two bank officers or a Screen Shot of the Account Statement no older than three days from the date of filling the CIS. 
 2. AFTER DUE-DILIGENCE APPROVAL, BENEFICIARY WILL FIRST RECEIVE A WRITTEN EMAIL FROM LONDON BASED SBLC PROVIDER CONFIRMING WHAT THE SBLC CONTRACT AMOUNT HAS BEEN APPROVED FOR AND TRANCHE SCHEDULE. THE SBLC TRANCHES WILL START FROM 50M - 250M EURO. 
3. AFTER DUE-DILIGENCE APPROVAL, THE BENEFICIARY WILL SECONDLY RECEIVE FROM THE INVESTMENT BANKER WHO IS PART OF THE PROVIDER GROUP AN SBLC APPLICATION TEMPLATE CONTAINING: a. THE APPROVED CONTRACT AMOUNT b. SBLC TRANCHE SCHEDULE c. THE BENEFICIARY CIS AND PASSPORT.               
4. THE BENEFICIARY COMPLETES THE REST OF THE BG-SBLC APPLICATION STATEMENTS:  

a. ACCEPTING THE SBLC PRICE.

b. MY BANK WILL ACCEPT THE CORPORATE INVOICE ACCEPTANCE COMING

c. MT799 BPU DECLARATIONS. The SBLC APPLICATION TEMPLATE MUST BE RETURNED ON BENEFICIARY’S LETTERHEAD & SENT TO THE INVESTMENT BANKER VIA E-MAIL.
5. AFTER SUCCESSFUL BENEFICIARY DUE-DILIGENCE AND BG-SBLC APPLICATION SUBMISSION TO THE PRINCIPAL GROUP, THE PROVIDER WILL PREPARE A FUNDING DEED OF AGREEMENT OR DOA FOR COUNTERSIGNING.

6. AFTER DOA SIGNING, BOTH PARTIES MAY LODGE THE FUNDING DOA WITH THEIR RESPECTIVE BANKS. THIS SIGNED DOA BECOMES THE LEGALLY BINDING CONTRACT (DEED OF AGREEMENT) BETWEEN THE PARTIES.

7. THE PRINCIPAL WILL ISSUE A CORPORATE INVOICE TO THE BENEFICIARY’S BANK SHOWING THE ALL-INCLUSIVE AMOUNT OF THE BG-SBLC PRICE AND COMMISSION TO BE PAID AFTER THE BG-SBLC HAS BEEN DELIVERED VIA SWIFT. THE BENEFICIARY’S BANK WILL SEND A WRITTEN CONFIRMATION BY MT199 TO THE PRINCIPAL BANK STATING THAT “IT IS RWA TO RECEIVE THE BG-SBLC MT799 PRE-ADVISE FROM PRINCIPAL AND WILL SEND BACK MT799 BPU VERBIAGE TO PRINCIPAL TO GUARANTEE PAYMENT FOR THE CORPORATE INVOICE AFTER DELIVERY OF BG-SBLC.”
8. WITHIN THREE (3) BANKING DAYS, THE PRINCIPAL’S BANK WILL ISSUE THE PRE-ADVICE VIA SWIFT MT799 CONFIRMING THAT THE INSTRUMENT WILL BE DELIVERED AGAINST THE ISSUANCE OF BPU (BANK PAYMENT UNDERTAKING) VIA SWIFT MT799 BY THE BENEFICIARY'S BANK AND PROVIDING SWIFT COPY VIA BANK EMAIL.
9. WITHIN FIVE (5) BANKING DAYS AFTER PRINCIPAL’S BANK RECEIVES AND AUTHENTICATES BPU SWIFT MT799, THE PRINCIPAL’S BANK DELIVERS THE SBLC VIA SWIFT MT760 PROVIDING THE COPY VIA BANK E-MAIL.
10. WITHIN SEVEN (7) BANKING DAYS AFTER THE SBLC IS DELIVERED AND RECEIVED BY SWIFT MT760 AND IS AUTHENTICATED, THE BENEFICIARY’S BANK WILL ACTIVATE THE BANK PAYMENT UNDERTAKING (XX% BPU) AND PAY THE PRINCIPAL VIA SWIFT MT103. THE HARD COPIES OF THE SBLC TO BE DELIVERED VIA BANK BONDED COURIER  TO  THE  BENEFICIARY’S BANK WITHIN  SEVEN  (7)  DAYS  AFTER  THE  PAYMENT  BEING  RECEIVED  BY  PRINCIPAL’S BANK.
11. THE BENEFICIARY PAYS XXXXXXX PERCENT ALL INCLUSIVE (XX% + 2%) OF FACE VALUE OF EACH TRANCHE, AS PER THE RELEVANT IRREVOCABLE FEE PROTECTION AGREEMENT (ANNEX 4).
12. ALL SUBSEQUENT TRANCHES WILL BE BASED ON THE SAME PROCEDURE, UNTIL THE AGREED AMOUNT OF THE CONTRACT WITH PRINCIPAL WILL BE COMPLETED, OR THE COLLATERAL OR FUNDS BECOME EXHAUSTED.
13. ANY UNAUTHORIZED BANK CALLS WITHOUT AGREEMENT BETWEEN PARTIES, PROBES OR COMMUNICATIONS, OR AN IMPROPER SOLICITATION OR DISCLOSURE INVOLVING ANY OF THE BANKS CONCERNED IN THIS TRANSACTION WILL RESULT IMMEDIATE CANCELLATION OF THIS TRANSACTION AND SUBJECT THE VIOLATING PARTY TO DAMAGES.​​

IMPORTANT: THE TRANSACTION PROCEDURE AND THE  TERMS AND CONDITIONS KEEP CHANGING. GET IN TOUCH WITH US FOR LATEST UPDATES


​If you are looking to obtain an SBLC either through purchase or lease, you have arrived at your final destination. We are experts at handling issuance of SBLC and we have done it many times over. Investment Bankers, Project Owners, Oil & Gas Traders, Commodity Traders, etc. have successfully obtained SBLCs through us. If you follow our procedure, it is likely that you might obtain an SBLC provided you are financially capable to transact and possess the right business credentials. We do not entertain brokers or intermediaries. The clients first need to engage us as their sole and exclusive SBLC FACILITATOR for obtaining SBLC through us. Before proceeding, we strongly recommend one reads through the information below:


WHAT IS SBLC ?

SBLC or standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SBLC performs brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then sends notification to the bank of the party requesting the letter of credit (typically a seller or creditor).
A standby letter of credit shows a company’s credit quality and ability to repay loans. Although a SBLC is not intended for use, it helps fulfill business obligations in case the business stops operations, cannot pay its vendors or becomes insolvent.
Small businesses often face difficulty when securing financing. For this reason, standby letters of credit may be especially beneficial for encouraging investors to lend money to a company. In case of default, investors are assured they will be paid principal and interest from the bank through which the SBLC is secured.
Standby Letters of Credit are issued for use in a wide variety of commercial and financial operations. Standby letters of credit are very much alike documentary letters of credit, their main difference is that unlike DLC’s, they only become operative in case the applicant defaults, then the beneficiary in whose favor the SBLC was issued, can draw on the SBLC and demand payment.
Historically, Standby letters of credit were developed because the US regulator legally limited US bank’s authority to issue guarantees.
SBLC’s are very similar to demand guarantees, which also require that the presentation of stipulated documents be compliant with the terms and conditions of the guarantee. SBLC’s and guarantees are different in terms of protection, they both serve the primary purpose of making sure that sellers get paid, but while a standby letter of credit protects the seller, a bank guarantee protects both sides, since it also protects the buyer in case the supplier never ships the goods or ships them in a damaged condition.

When requesting a SBLC, a business owner proves to the bank he is capable of repaying the loan. Collateral may be required to protect the bank in case of default. The bank typically provides a letter to the business owner within one week of receiving documentation. The business owner must pay a SBLC fee for each year that the letter is valid. The fee is typically 1-10% of the SBLC value. If the business owner meets the criteria outlined in the contract before the due date, the business owner can cancel the SBLC without further charges.
Standby Letters of Credit (SBLC) are a very flexible tool, making them a suitable product for securing a wide range of payment scenarios. A financial SBLC, the most common type, is typically used in international trade or other high-value purchase contracts where litigation or other non-payment actions may not be feasible. A financial SBLC guarantees payment to the beneficiary if criteria outlined in the contract are left unfulfilled. For example, an exporter sells goods to an overseas buyer who guarantees payment in 30 days. When the payment does not appear by the deadline, the exporter presents the SBLC to the importer’s bank and receives the payment.
A performance SBLC ensures the time, cost, amount, quality of work and other criteria are fulfilled in a manner acceptable to the client. The bank pays the beneficiary if any of the written obligations are unmet. For example, a contractor guarantees a construction project will be finished in 90 days. If work remains incomplete after the 90-day period, the client can present the SBLC to the contractor’s bank and receive the payment due.

HOW DOES SBLC WORK?
1. A performance standby – backs a commitment to perform other than to pay money/funds and includes an obligation to pay for loses occurring from a default of the buyer in the process of completing an underlying transaction.
2. An advance-payment standby – supports an obligation to account for an advance payment made by the supplier to the buyer.
3. A bid-bond or tender-bond standby – backs an obligation of the buyer to execute a contract if the buyer is awarded a bid.
4. A counter standby – backs the issuance of another, separate standby letter of credit or other undertaking by the supplier of the counter standby.
5. A financial standby – supports an obligation to pay funds, including any instrument evidencing an obligation to repay borrowed money.
6. An insurance standby – supports an insurance obligation of the applicant.
7. A commercial standby – backs the commitment of a buyer to pay for goods or services in the event of non-payment by other methods.
8. A direct-pay standby – intended to be the primary method of payment. It may or may not be linked to a default in performance or payment.


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