Beneficiary submits to Subcontracts India a signed official Letter Of Interest (LOI) for applying for SBLC/BG together with compliance documents:
  1. Client Information Sheet (CIS)
  2. Statement of Non-Solicitation of Funds (Included in the CIS)
  3. Irrevocable Fee Protection Agreement.
  4. Clear color copy of the Beneficiary’s/Signatory’s passport
  5. Certificate of Incorporation of Beneficiary’s company
  6. Proof of fund (POF): There must be availability of cash funds (not credit line) in the beneficiary's bank account sufficient to cover at least 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. 

After thorough and extensive  due-diligence of the Beneficiary and subsequent approval by the Provider, Beneficiary will receive the Deed Of Agreement (DOA) Format which spells out Terms and Conditions of the contract, approved contract amount (Face Value), individual tranche size and schedule, price, etc.  

The beneficiary completes the Deed of Agreement (DOA):  
a. Accepting the SBLC price.
b. Confirming beneficiary’s bank will accept the Provider’s Corporate Invoice
c. Confirming acceptance of SWIFT MT799 BPU verbiage.
d. Confirming the Intermediary Fee Protection Agreement
e. Confirming the acceptance of the SWIFT MT760 (SBLC) verbiage

The filled & signed DOA must be returned on beneficiary’s letterhead & sent to Subcontract India via e-mail duly signed in blue ink and stamped on each page

After internal scrutiny and evaluation of the filled DOA received from the beneficiary, the Provider might undertake another due-diligence of the beneficiary. Once DD outcome is satisfactory, the Deed Of Agreement (DOA) would be countersigned by the Provider after filling in all the relevant information relating to the Provider and his Bank, and returned to either the beneficiary for lodging it in his bank or to the beneficiary’s bank directly  

The fully executed Deed Of Agreement (now lodged with Provider’s and Beneficiary’s respective banks) becomes the legally binding contract between the two parties. The Provider  will then issue a Corporate Invoice to the Beneficiary’s bank showing the all-inclusive amount of the SBLC/BG price and commissions to be paid after the SBLC/BG has been delivered via SWIFT MT760.

The beneficiary’s bank will send a written confirmation via SWIFT MT799 to the Provider’s bank stating that “it is RWA (ready, willing and able) to receive the SBLC/BG as per the Deed Of Agreement.  

Provider’s Bank will acknowledge the receipt of the SWIFT MT799 RWA and send a counter MT799 RWA to the Beneficiary’s bank confirming it is ready, willing and able to send the SBLC/BG Pre-Advice via SWIFT MT799 to the Beneficiary’s Bank.

Within three (3) banking days, the Provider’s bank will issue the SWIFT MT799 Pre-Advice confirming that the actual instrument (SBLC) will be delivered against the issuance of SWIFT MT799 BPU (Bank Payment Undertaking) by the Beneficiary's bank.

Beneficiary’s Bank will send the SWIFT MT799 BPU as per the verbiage earlier provided in the DOA to guarantee payment for the Corporate Invoice after delivery of the SBLC/BG to Beneficiary’s bank.

Within five (5) banking days after Provider’s bank receives and authenticates the SWIFT MT799 BPU, the Provider’s bank will deliver  the SBLC/BG via SWIFT MT760 and also provide the copy of the SWIFT message via bank e-mail.

Within Five (5) banking days after the SBLC/BG is delivered and received by Beneficiary’s bank via SWIFT MT760 and is authenticated, the Beneficiary’s bank will activate the Bank Payment Undertaking and pay the Provider as well as intermediaries mentioned in the IMFPA via SWIFT MT103. The hard copy of the SBLC/BG to be delivered via bank bonded courier  to  the  Beneficiary’s bank within  seven  (7)  days  after  the  payment  being  received  by  the Provider's bank.

FOR MORE DETAILS: EMAIL Us at [email protected] 
sblc by subcontracts india
sblc by subcontracts india
sblc by subcontracts india
sblc by subcontracts india


**Seven Bank-to-Bank steps to close Standby Letter Of Credit (SBLC)/ Bank Guarantee (BG) delivery process (Lease):

  1. Purchaser/Lessee sends POF MT799 or MT199 to INVESTOR’S Bank Account
  2. Issuing Bank Sends MT799 Pre-Advice to Receiver's Bank Account
  3. Receiving Bank Verifies and Authenticates the MT799 Pre-Advice
  4. Receiving Bank replies to MT799 by sending to Issuing Bank MT799 BPU (Bank Payment Undertaking)
  5. Issuing Bank verifies and then sends MT760
  6. Receiving Bank verifies and authenticates the MT760
  7. Purchaser/ Lessee pays Instrument fee to INVESTOR’S Account within five (5) Days
NOTE REGARDING POF: Although this request for Proof Of Fund (POF) is not a part of the provider’s DOA, before we do a submission, however, we need to receive from the buyer/ Lessee a recent POF (be it cash funds and or credit line with available balance) so we can at least verify on a preliminary basis the client’s financial capability to do at least the first tranche. If needed this document can be sanitized to protect the client’s info but it needs to show the bank/location that issued it and the cash funds or credit line available balance. We have had situations before in which principals complete and sign the DOA and the buyer/ Lessee (window shopper for provider's info) does not send the Swift POF as per DOA procedure.

One might ask what the benefits are for leasing a bank instrument. Well, it is very good for trade finance.It's a good to give the Seller comfort should the Buyer not pay for goods received
It's also a good way for a Purchaser to buy goods to sell on to a Buyer waiting in the wings and use proceeds from sale to pay for the goods purchased from the Seller. In trade finance the Supplier will want assurances by way of a bank instrument to demonstrate that should an invoice not be settled, they can call on the instrument and cash it in to collect their payment. 

A leased SBLC is in effect a bank guarantee, which is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer, looking to secure the SBLC. Following this it will lease a guarantee to that customer for a set amount of money and over a set period of time 

Although a leased Standby Letter Of Credit (SBLC)/ Bank Guarantee (BG) is not considered an "asset" (leased SBLC/BG is not trading securities, trading debt instruments, or trading investment funds. There is no public market for the trading of SBLCs/BGs. All SBLC/BG transactions are private transactions), it can still be monetized, discounted or funded (whereby the SBLC/BG is turned into usable cash) by a resourceful Monetizer. Remember, SBLC is after all a written obligation of the issuing bank to pay a sum on to a beneficiary on behalf of their customer in the event that the customer himself does not pay the beneficiary. The Instrument/ Security remains valid during the term before the Expiry Date. Most SBLCs are issued for a 1 year and 1 day Term. 

​To determine if a borrower is worthy of a leased Standby Letter Of Credit (SBLC)/ bank Guarantee (BG), many banks will undertake a credit analysis. Credit analyses focus on the ability of the organization to meet its debt obligations, focusing on default risk. Lenders will generally work through the five C's to determine credit risk: the applicant's credit history, capacity to repay, its' capital, the loan's conditions, and associated collateral. This form of due diligence can revolve around liquidity and solvency ratios. Liquidity measures the ease with which an individual or company can meet its financial obligations with the current assets available to them, while solvency measures its ability to repay long-term debts. Specific liquidity ratios a credit analyst may use to determine short-term vitality are current ratio, quick ratio or acid test, and cash ratio. Solvency ratios might entail the interest coverage ratio.
In contrast to a purchased or owned SBLC/BG where the buyer becomes the official owner of the instrument and in turn would be able to lease the SBLC/BG out to a Third Party, a "leased SBLC/BG" cannot be "leased out" any further. 

​​If you are looking for a genuine/reliable Provider to buy or lease a Standby Letter Of Credit (SBLC) or a Bank Guarantee (BG), you have arrived at your final destination. We are experts at handling issuance of SBLC/BG and we have done it many times over. Corporations, Airline Operators, Investment Bankers, Energy Companies, Project Owners, Miners, Oil & Gas Traders, Commodity Traders, etc. have successfully obtained SBLCs/BGs through us. We firmly believe that all our clients must receive correct and full information about SBLC or BG prior applying for these instruments. 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 generally do not accept applications from brokers or intermediaries. All SBLC/BG applicants are first required to engage us as their sole and exclusive SBLC FACILITATOR for obtaining SBLC/BG through us. Our services are no longer free and clients seeking SBLC/BG need to pay for the Compliance we undertake once CIS/KYC form is received by us. This also helps us keep myriad of joker brokers who have absolutely no knowledge of how things work in this industry.

Subcontracts India
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