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