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Standby Letters of Credit

INTRODUCTION

In global trade activities, the beneficiary of the Standby Letter of Credit designates Bank of China U.S.A. as the advising bank in business negotiations. Whether issued on paper or by telex, Bank of China U.S.A. can verify the authenticity of the Standby Letter of Credit for customers.

 

  • Effectively prevents commercial fraud
  • Simple and convenient procedure with relatively low expenses

ACCOUNTS

In global trade activities, the beneficiary of the Standby Letter of Credit designates BOC U.S.A. as the advising bank. Whether issued on paper or by telex, Bank of China U.S.A. provides the service to advise the Standby Letters of Credit for customers.

  • Help to verify the authenticity of the Standby Letter of Credit.
  • Simple and convenient procedure with a global network.

A Payment Standby Letter of Credit is a written document issued by BOC U.S.A. at the request of the buyer to the seller under the contract, guaranteeing the buyer will fulfill the payment obligations under the contract to purchase goods, technology, patent or labor.

  • BOC U.S.A. acts as a guarantor to ensure a smooth transaction, including fulfilment of contractual obligations.
  • Timely and accurate payment for goods. 
  • Broad application from merchandise trade to construction projects.

A Financing Standby Letter of Credit is a written document issued by BOC U.S.A. at the request of the borrower to the lender, guaranteeing that the borrower will fulfill their obligation to repay the borrowed funds. These include Loan Standby Letters of Credit, Overdraft Standby Letters of Credit, Securities Issuance Standby Letters of Credit, and Credit Line Standby Letters of Credit.

  • Bank of China U.S.A. acts as a guarantor to ensure a smooth transaction.
  • Enhances borrower's creditworthiness and facilitates its financing.
  • Builds trust and reduces the likelihood of contract breaches.

An Advance Payment Standby Letter of Credit is a written document issued by BOC 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.

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

A Tender Standby Letter of Credit is a written document issued by BOC U.S.A. at the request of the tenderer for construction and procurement of project bids, committing that the tenderer will not withdraw or amend its bid during the validity period and will sign the contract or submit a performance Standby Letter of Credit within the preset time once the bid is secured.

  • Bank of China U.S.A. acts as a guarantor to ensure a smooth transaction.
  • If possible, can be used as an alternative to cash margin.
  • Builds trust and reduces the likelihood of contract breaches.

A Performance Standby Letter of Credit is a written document issued by BOC U.S.A. at the request of the customer to the owner of a contracted project or the buyer of a sales deal, guaranteeing the applicant will perform and complete the contracts.

  • Solves the problem of mutual mistrust between both parties of a transaction.  Bank of China U.S.A. enables the transaction and acts as a guarantor to promote a smooth transaction by providing a guarantee for the parties.
  • Guarantees fulfillment of contractual obligations, as well as quality of the subject matter of contract.
  • Indemnifies the damaged party and penalizes the defaulting party in case of breach of contract to avoid or reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.