Among all other types of trade finance instruments, a Standby Letter of Credit is one of the most frequently used instrument as a payment back-up plan in international trade. It assures an on-time payment to the exporters as long as the importer defaults and exporter submits the proof of the same. As the name suggests, the bank is on standby mode. Got a few queries about Standby LC?

Check out this guide:

https://www.emeriobanque.com/blogs/reasons-to-use-standby-letter-of-credit-in-international-transactions