Letter of Credit

Documentary Letters of Credit are used in International Trade Finance to assist your Company's Cash Flow situation.

A Standby letter of credit is a secondary mechanism for improving payment or credit. A financial institution may issue a SBLC to a client to assure the receiver of the documentary credit instrument its ability to pay in terms of the terms of payment of a contract between the beneficiary and the customer for which the bank issues the SBLC.

Documentary Letters of Credit are used in International Trade Finance to assist your Company's Cash Flow situation.

Generally, letters of credit are usually classified into one of two classifications:

N°1

Standby Letters of Credit (SBLC) - which provide a "Guarantee" from a bank on behalf of a third party in case of Default or non-payment by the beneficiary (creditor)

N°2

Documentary Letters of Credit (DLC) - Which are generally used for import and export to conduct business between companies from different countries.

Documentary Letter of Credit (DLC)

Standby Letter of Credit/SBLC (MT-760)

In order to monetize a SBLC (SBLC Monetization) must be in possession of the title and must be paid before monetizing (Before requesting monetization).

Since STF we have developed the structure and tools needed to issue or monetize, through partnerships with Bank Winter & Co in Vienna, Austria, for customers worldwide through instruments of ownership, such as BG (Bank Guarantees), SBLC (standby Letter of Credit), and other banking and financial instruments.

This form of financing can be used in combination with our cash position backed by a letter of credit (SBLC) or bank (BG) guarantee in order to monetize the newly created document to obtain adequate funding for project financing.