About the product

SBLC is a commitment made by the bank to the beneficiary at the request of the applicant, which guarantees that the beneficiary will pay the beneficiary when the beneficiary presents specific documents and the documents are in conformity.

Product features

1. The SBLC is not necessarily executed. It is executed only when the relevant party fails to perform the basic items guaranteed by the SBLC.

2. Different from commercial letters of credit for common trade transactions, SBLC is applicable to importers and exporters with long-term trade relations; or the circumstance that the parent company group assists overseas subsidiaries in applying for bank credit lines, and the parent company bank issues a SBLC to the subsidiary bank as credit guarantee.

3. Compared with the traditional letter of credit, SBLC is easy to operate, and usually does not need to be executed, which reduces the procedures and expenses for document examination.

Application

Traders with long-term trade relations or group enterprises with overseas subsidiaries.

Rate

Charge according to the relevant rates of cross-border guarantee business of the Bank.

Handling process

1. The customer submits an application for opening a SBLC.

2. The applicant submits the basic materials related to the business.

3. The bank examines customer qualifications, basic transactions and related materials.

4. The bank examines the written application and format of SBLC.

5. The bank verifies the guarantee of the customer's deposit or credit line.

6. SBLC is issued.