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.