A Standby Letter of Credit (SBLC) is a guarantee of payment issued by a bank on behalf of a client that is used as “payment of last resort” should the client fail to fulfill a contractual commitment with a third party.  SBLC is a bank guarantee in the form of a documentary credit.

SBLCs are used to:
•    guarantee any failure to pay on the part of the purchaser/importer;
•    guarantee any failure to perform the agreement on the part of the supplier/exporter.