Standby Letter of Credit

• To simplify the process of ordering goods overseas without down payments or prepayments
• To optimize your cash flow management deferring payment until or beyond shipment date
• Assurance that your supplier has complied with his part of the agreement
• To guarantee and demonstrate your ability to meet your contractual obligations to a third party

Once a standby letter of credit has been issued the bank has committed itself to pay out in case of a claim from the beneficiary. As such it is considered a credit instrument and the same requirements apply as with loans and overdraft facilities.

Your Corporate Account Manager will explain what information to submit in your specific case.

Please see below a checklist of the most commonly required documents*:

• Bank references certifying good credit standing and reputation
• Recent financial statements
• Cash flow projections per project phase
• An investment budget
• Fair own contribution to equity
• A copy of construction offers
• Appraisal reports of collateral required
• A recent list of stock
• A recent list of accounts receivable
• Other as per checklist under Tab ‘General’*

* depending on which is applicable in your specific case