#Bongyan Finance Limited Top 5 Providers SBLC/BG,
It’s a common scenario. You’ve won a contract to develop a customized piece of equipment, and your international customer has given you a $ advance so you can buy materials, hire extra staff and get started on the project. All she wants in return is a standby letter of credit in the same amount, as assurance she can recover her money if you don’t fulfill your obligations. It all looks great on paper, but how much money do you really have to cover your upfront costs? The surprising answer is zero, or close to it. Financial institution wants collateral to post standby letter of credit The challenge arises when you go to your financial institution to get the standby letter of credit. Just like your customer, the financial institution doesn’t want to take a risk (especially for a transaction occurring outside of your country), so they will ask you to post collateral in the same amount to secure the letter of credit. In other words, the $.000000 advance you got from your customer is n...