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.
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
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