Skreebee Logo
    • Advanced Search
  • Guest
    • Login
    • Register
    • Night mode
Axios Credit Bank Ltd Cover Image
User Image
Drag to reposition cover
Axios Credit Bank Ltd Profile Picture
Axios Credit Bank Ltd
  • Timeline
  • Groups
  • Likes
  • Friends
  • Photos
  • Videos
Axios Credit Bank Ltd profile picture
Axios Credit Bank Ltd
2 yrs - Translate

Key Differences Between A Letter Of Credit & Standby LC

Letter of credit (LC) & Standby Letter of credit (SBLC) are both the most popular, & reliable trade finance instruments used by global importers & exporters in international trade to reduce the risk of payment failure & to ensure financial stability.

A Letter of credit is a primary method of payment, while Standby LC is used when there’s a risk of buyer’s non-performance during a transaction. So, what is the difference between an LC and SBLC? Let’s check out:

Letter of Credit Vs Standby Letter of Credit

Both the letter of credit (LC), and the Standby letter of credit (SBLC) are payment guarantee instruments used in international trade. In this article, we’ve discussed the key differences and usage between LC and SBLC. Take a look:

What is a Letter of Credit?

Under a letter of credit service, the issuing bank guarantees an on-time & full-fledged payment to an exporter on behalf of its client ie. importer for the ordered goods or services. But in the event, if the importer defaults in payment or is unable to fulfill the terms & conditions of the LC contract, then, the issuing bank will compensate the beneficiary ie. the exporter.

The role of the issuing bank is to make sure that the buyer pays on time and the agreement goes as planned catering to all the T&Cs being followed by both parties.

Read more: https://www.axioscreditbank.co....m/blogs/key-differen

#letterofcreditservice #standbylc #letterofcredit #differences #tradefinanceinstruments #standbylcagreement

image
Like
Comment
Share
Axios Credit Bank Ltd profile picture
Axios Credit Bank Ltd
2 yrs - Translate

Top Most Asked Questions About Letters of Credit

If you’re an importer/exporter dealing in international trade, “letter of credit” is a term you encounter often. It is one of the most trusted trade finance instruments to mitigate risks in global trade transactions. Yet, the term can be confusing for many people, especially those who are seeking secure means of payment in overseas dealings.

This article discusses some of the most common FAQs you have regarding a letter of credit service. Check out here:

1. What is a Letter of Credit?

The most popular trade finance instrument, letters of credit are the legal documents issued by the buyer’s/importer’s bank in favor of the overseas exporter/seller, guaranteeing an on-time & full-fledged payment for the ordered goods & services. However, if a buyer/importer fails to comply with the terms and conditions or is unable to pay the amount, the issuing bank will pay the exporter instead.

2. How does a Letter of Credit service work?

1. At first, the applicant or buyer/importer must approach an issuing bank to issue an LC in favor of the exporter.
2. Then, the advisory bank (exporter’s bank) receives the letter of credit and further forwards it to the seller after verifying the authenticity and legalities.
3. The seller ships the ordered goods as per the LC agreement and receives a bill of lading as proof of shipped goods.
4. Now, the seller presents the bill of lading to the nominated or negotiating bank.
5. After checking whether the goods have been delivered or not, the bank pays the seller.
6. The negotiating bank forwards the shipping documents to the issuing bank to release the payment.
7. Then, the issuing bank sends these documents to the buyer and requests approval.
8. The buyer pays the issuing bank, and the bank forwards the amount to the negotiating bank.

Read more: https://www.axioscreditbank.co....m/blogs/top-most-ask

#letterofcreditservice #faqs #tradefinanceinstrument #typesoflettersofcredit #standbyletterofcredit #internationaltradetransactions

image
Like
Comment
Share
Axios Credit Bank Ltd profile picture
Axios Credit Bank Ltd
2 yrs - Translate

How To Get A Letter Of Credit From A Bank To Import Goods From Overseas

Applying for a letter of credit (LC) with a bank for overseas transactions can be a complex process, but with careful planning and attention to detail, it can be a smooth and successful experience. An LC is a payment guarantee letter issued by a bank that guarantees payment to the seller for goods or services delivered to the buyer. Here are the steps to apply for an LC with a bank for overseas transactions.

Identify the Need for an LC: The first step is to determine whether an LC is needed for the overseas transaction. An LC provides a guarantee to the seller that they will receive payment, which can help to mitigate the risk of non-payment and secure the transaction.

Choose a Bank: The next step is to choose a bank that will offer a letter of credit service. Look for a bank that has experience with international trade and a good reputation in the global trade community.

Submit an Application: Submit an application to the bank for an LC. The application will typically require detailed information about the transaction, including the amount, currency, and terms of the LC.

Read more: https://www.axioscreditbank.co....m/blogs/how-to-get-a

#standbylc #letterofcredit #internationaltrade #lcprovides #paymentguaranteeletter #importgoods

image
Like
Comment
Share
Axios Credit Bank Ltd profile picture
Axios Credit Bank Ltd
2 yrs - Translate

Key Differences Between A Letter Of Credit & Standby LC

Letter of credit (LC) & Standby Letter of credit (SBLC) are both the most popular, & reliable trade finance instruments used by global importers & exporters in international trade to reduce the risk of payment failure & to ensure financial stability.

Read more: https://www.axioscreditbank.co....m/blogs/key-differen

#letterofcreditservice #standbylc #letterofcredit #differences #tradefinanceinstruments #standbylcagreement

Key Differences Between A Letter Of Credit Standby LC.pdf
Like
Comment
Share
Axios Credit Bank Ltd profile picture
Axios Credit Bank Ltd
2 yrs - Translate

The Pros and Cons of Using Trade Finance to Finance Your Business

If talking about trade finance then it is a specialist financial service which offers money and help to international trade firms. It provides a variety of financing choices and technologies to support export and import transactions, assisting businesses in overcoming financial obstacles and expanding their business activities in the worldwide marketplace. While trade finance may be extremely advantageous to organizations, it is critical to recognize both the benefits and drawbacks of adopting trade finance as a funding solution.

Read more: https://www.axioscreditbank.co....m/blogs/the-pros-and

#tradefinance #globaltrade #globaleconomy #tradefinancesolutions #importfinance #lettersofcredit #tradefinancingprovides

The Pros and Cons of Using Trade Finance to Finance Your Business.pdf
Like
Comment
Share
 Load more posts
    Info
  • 35 posts
  • https://www.axioscreditbank.com/

  • Male
  • Jan-01-90
  • Living in Malaysia
  • Located in Kuala Lumpur, Malaysia
  • Social Links
About

Axios Credit Bank is one of the most trusted, popular, and leading financial institutions offering safe, secure, and flexible international trade finance services including global import & export trade finance, OffShore Business Banking, Letter of Credit, Currency Exchange, Escrow services, and many more. With our great years of experience and expert team of financial advisors, we are supporting international importers & exporters worldwide by providing them short-term trade finance services for their business transactions. Regardless of size and nature, we are known for providing the perfect & suitable tailor-made solutions designed according to your business needs. So, if you are a global trader and looking for trade finance instruments to assure your overseas suppliers, we are a one-stop solution.

    Albums 
    (0)
    Friends 
    (5)
  • Matthew Gi
    Skreebee
    Robert Cam
    Kim Camero
    Elise Pete
    Likes 
    (0)
    Groups 
    (0)
    Products for sale

© 2025 Skreebee

Language
  • English
  • Arabic
  • Dutch
  • French
  • German
  • Italian
  • Portuguese
  • Russian
  • Spanish
  • Turkish

  • About
  • Blog
  • Contact Us
  • Developers
  • More
    • Privacy Policy
    • Terms of Use
    • Request a Refund

Unfriend

Are you sure you want to unfriend?

Report this User

Important!

Are you sure that you want to remove this member from your family?

You have poked Axioscreditbank

New member was successfully added to your family list!

Crop your avatar

avatar

© 2025 Skreebee

  • Home
  • About
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • Request a Refund
  • Blog
  • Developers
Language
  • English
  • Arabic
  • Dutch
  • French
  • German
  • Italian
  • Portuguese
  • Russian
  • Spanish
  • Turkish

© 2025 Skreebee

  • Home
  • About
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • Request a Refund
  • Blog
  • Developers
Language
  • English
  • Arabic
  • Dutch
  • French
  • German
  • Italian
  • Portuguese
  • Russian
  • Spanish
  • Turkish

Comment reported successfully.

Post was successfully added to your timeline!

You have reached your limit of 5000 friends!

File size error: The file exceeds allowed the limit (9 GB) and can not be uploaded.

Your video is being processed, We’ll let you know when it's ready to view.

Unable to upload a file: This file type is not supported.

We have detected some adult content on the image you uploaded, therefore we have declined your upload process.

Share post on a group

Share to a page

Share to user

Your post was submitted, we will review your content soon.

To upload images, videos, and audio files, you have to upgrade to pro member. Upgrade To Pro

Edit Offer

0%

Add tier








Select an image
Delete your tier
Are you sure you want to delete this tier?

Reviews

Pay By Wallet

Add New Address

Delete your address

Are you sure you want to delete this address?

Payment Alert

You are about to purchase the items, do you want to proceed?
Request a Refund