Standby

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