Product Overview
A Standby Letter of Credit is often used to protect against non-performance of contractual obligation by the exporter. It is added security to the importer that their order will be processed. It can also be used as a bank guarantee to secure other financial obligations.
Benefits
- Security that contractual obligations will be satisfied by the exporter
- HSBC represents your company in payment obligation
- HSBC uses its trade expertise and broad international network to ensure safety of the transaction
Product Features
- Variable terms
- Drawings under standby credits are usually made by means of simple declaration of non-performance accompanied by minimal supporting documentation
- Also available in securing performance obligation of exporter
