Standby LCs (SBLC)

Are you a franchisee or a stockist of products from trusted suppliers abroad? You don’t have to constrain your working capital or take a loan to pay for the goods in advance. Finance Trust Bank can issue a standby letter of credit (SBLC) to your suppliers, to serve as liquid collateral upon which they can continuously ship goods to you on credit terms. This gives you, the importer, the option to pay after selling off the goods under an arrangement called open account. The supplier is confident that the importer will continuously remit the sales proceeds, but in the event of adverse effects, the SBLC is liquidated to pay up for the outstanding amount. This option is well suited for importers of fast-moving consumer goods such as fuel and gas, as well as Franchisees that are required to deposit security for their licenses. Contact us to explore such options that could help you boost your working capital and business profitability.