Advance Payment Standby Letters of Credit

INTRODUCTION

An Advance Payment Standby Letters of Credit is a written document issued by Bank of China U.S.A. at the request of a customer to the owner of a contracted construction or the buyer of a sales deal, guaranteeing that the applicant will fulfill the contractual obligations after the owner or the buyer makes a payment in advance.

FEATURES & BENEFITS

Act as a guarantor: Bank of China U.S.A. acts as a guarantor to ensure a smooth transaction, including fulfillment of contractual obligations
Timely and accurate: Facilitates timely receipt of advance payment and ensures accurate payment
Reduce contract breaches: Reduces the likelihood of contract breaches by indemnifying the damaged party and penalizing the defaulting party
Speed up capital turnover: Speeds up capital turnover during project construction and preparation-of-goods period.