Trade Instruments and Project Instruments for established businesses to facilitate international trade without collateral.
Trade Instruments Explained
We are able to provide various trade and project instruments, the most commonly requested being:
● Letter of Credit (LC)
● Standby Letter of Credit (SBLC)
1. Letter of Credit (LC)
A Letter of Credit is a legal document issued by a bank on behalf of a buyer, guaranteeing payment to a seller upon the fulfilment of specific conditions. It provides protection to both parties in international trade transactions, ensuring that the seller receives payment and the buyer receives the goods or services as agreed upon.
2. Standby Letter of Credit (SBLC or SLOC)
A Standby Letter of Credit is a legal document that guarantees a bank’s commitment of payment to a seller if the buyer, or the bank’s client, defaults on the agreement. A SBLC helps facilitate international trade between companies that don’t know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller is certain to receive payment, a SBLC doesn’t guarantee the buyer will be happy with the goods.
Do you require our expertise in the area of Trade Instruments ? Please feel free to contact us via email info@capexinvestmentuk.com