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IRREVOCABLE STANDBY LETTER of CREDIT NUMBER Amount Puc Texas  Form

IRREVOCABLE STANDBY LETTER of CREDIT NUMBER Amount Puc Texas Form

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standby letter of credit also called sblc is a bank guarantee with which the importer guarantees his supplier that his bank will take his place if he is deficient provided that the exporter presents the requested document as a proof of the existence of the claim it is therefore a documentary guarantee paid on first demand which aims at securing the performance of a contract an obligation or a flow of commercial transactions the benefits firstly for the seller it guarantees that he will receive his payment even if the buyer is no longer able to do so also since this solution is only triggered in the event of the buyer's inability to pay the buyer is not fully committed to the credit unlike the documentary credit which saves money thanks to the letter of credit the upstream payment of large amounts is facilitated and secured this solution is particularly interesting for companies that import from a supplier located in another country diagram of the implementation of the standby letter of

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