Advance Payment Standby Letters of Credit
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.