STAND BY LETTER OF CREDIT
Which companies are concerned?
Whether you are a Sole Proprietorship Company, Common Interest Group or Economic Interest Group, you can be granted this facility.
Principle
Stand-By Letters of Credit are created as a sign of good faith in business transactions. They testify the buyer’s credibility and ability to fulfil any financial engagements vis-à-vis the seller. It guarantees the claims of a creditor vis-à-vis a debtor in an event of contractual noncompliance with regard to delivery of goods, service provision, or payment on an agreed date or repayment of a loan on a due date.
Duration
The duration of a Stand-By Letters of Credit depends on the purpose of the guarantee though it generally runs for 1 year renewable.
How to obtain this facility
|
|||||