A type of statement that is presented to a seller saying that if the buyer of an item fails to pay, that buyer's bank will make the payment on the buyer's behalf. These letters tend to help eliminate risk to the seller in that they will be paid for their item in one manner or another, either from the buyer or from the bank that has issued the letter of credit.
Related information about standby letter of credit:
- Standby Letter of Credit (SLOC) Definition | Investopedia
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 ...
- How a standby letter of credit helps you get paid
A Standby Letter of Credit (called“SLC or “LC” ) are written obligations of an issuing bank ... The standby letter of credit comes from the banking legislation of the ...
- What is the different between letter of credit and standby letter of credit
Unlike a trade letter of credit, a standby letter of credit is NOT meant to be used for payment. A standby letter of credit is used as a form of "back-up" guarantee ...
- Understanding and Using Letters of Credit, Part I
The standby letter of credit serves a different function than the commercial letter of ... A bank will issue a standby letter of credit on behalf of a customer to provide ...
- Standby Letter of Credit
Standby Letter of Credit definition, usage, rules and practices can be found in ... Also you should now the difference between Standby Letter of Credit and the ...
- What is standby letter of credit (L/C)? definition and meaning
Definition of standby letter of credit (L/C): A letter of credit that is used mainly in the US where banks are legally barred from issuing certain types of guaranties.
- Encyclopedia of Credit - Standby Letter of Credit, Irrevocable ...
A standby Letter of Credit includes a guarantee of payment. ... A bank will issue a standby Letter of Credit on behalf of a customer to provide assurances of its ...
- Standby Letter of Credit - Financial Dictionary - The Free Dictionary
standby letter of credit. Also found in: Acronyms, 0.01 sec. Standby Letter of Credit. Documents evidencing failure of the bank's customer (the applicant) to pay an ...