Standby Documentary Credit

Why is this payment method right for you?

• You can use it to guarantee payment in case of default or non-performance
• Gives suppliers payment assurance to accept open account trading
• Allows you to leverage your credit standing to secure banking facilities for other companies

Other benefits

• A way to consolidate bank relationships in one office for greater convenience and control
• Can be used as an alternative to performance and bid bonds
• Accepted in countries such as the US where bank guarantees are not allowed
• Can provide substantial savings in transaction fees if you make purchases of similar amounts at regular intervals from the same supplier

How does a Standby Documentary Credit work?

Standby Documentary Credits (SDCs) are generally used to guarantee a third-party's credit facility. The most common type of SDC is opened on behalf of a parent company, in favour of the lending bank, to guarantee facilities granted to its subsidiary.

Other useful information and services

• Export Services
• Trade Finance
• Trade solution
• Online trade services
• Guarantees

Disclaimer: The above information is provided for your reference only without legally binding over any party, and does not construe any form of legal, financial or other professional advice. Trade and supply chain transactions may be subject to credit approval. Other restrictions, including specific country regulations, may apply. Foreign currency exchange rates may apply to certain trade transactions.