LondonLondonIndiaUAE BIC - YIFIGB21 +44 7453 655551, +44 7784 857427, +442077121635 BIC - YIFNINB1 +91 9888672938, +91 78370 39490 BIC - YIMFAEA1 +971 52 715 8218, +971 58 860 7792, +971 502066402
Yield 4 Finance > Our Services > Stand By Letter Of Credit

Standby Letter Of Credit

A guarantee issued by a bank or a financial institution to pay a beneficiary on a client’s behalf in a situation where the applicant defaults, is known as a standby letter of credit. This was developed as a consequence of legal limitation put by the US regulator on the bank’s authority for issuing guarantees.

A standby letter of credit is considered quite suitable for a wide range of secure payments making it quite a flexible tool. Most commonly, it is used for international trade purposes for providing assurance to the party that it will receive the payment whatever the case it. Having said this, there are quite a few complexities involved in a standby letter of credit. This suggests that it is necessary to have a consultation with an expert in case complete information is not available regarding the procedure.


There are certain types of a standby letter of credit which are mentioned below:

  • A direct-pay standby
  • A performance standby
  • A bid-bond or tender-bond standby
  • An advance-payment standby
  • A financial standby
  • A counter standby
  • A commercial standby
  • An insurance standby

Issuers for SBLC

  • Sigma Financial Solutions
  • Micro Capitals Bank
  • Acumen Bank
  • United Trust Bank
Share This