Standby Letter of Credit is called as “Back up Plan for Payment” and a “Payment at Last Resort”. This financial instrument is used by importers who wish to conclude their trade dealings with global suppliers without facing cash flow issues. Understanding the importance of having MT760, one of the Chinese trader, Mr. T’ao Peng contacted us with their SBLC requirement to import cars from Germany. Read this blog on Bronze Wing Trading Reviews and watch the video to see how we assisted the client with their requirements and how the client felt satisfied with our services.
A Client Overview:
A Client from China decided to spread their business wings by expanding their auto showroom by importing cars from overseas. The importer searched for a reliable supplier and finally chosen the one from Germany. The auto dealer from Germany is ready to export the vehicles as per the contract.
Since the Chinese buyer face lack of cash funds, they contacted their bank with their SBLC Request. As the client didn’t had any bank facilities, the bank declined to issue MT760 on their behalf. But, since the client had a strong trade record, the bank advised the buyer to bring Standby LC in their favor, so that the bank can arrange the credit facility against the SBLC. This idea seemed to be the good for the Chinese car importer. So they searched for the SBLC providers to avail MT760 on their behalf.
Our Role in Issuing SBLC MT760
The Client found BWT and sent us their MT760 request. Since the client complies with all T&Cs, we approved their request. And then, we worked with our bank to structure their SBLC deal and provided the SBLC draft for their approval. The client studied the draft and also, forwarded it to their bank to make sure whether it complies with all the terms. Since our SBLC draft met all the required criteria, the client approved the SBLC draft. And at once, we instructed our bank to issue the Standby Letter of Credit MT760 as per the draft approved by the client.
The Buyer Availed Credit Facility from Their Bank
Once the buyer received the SBLC in their favor, they pledged the Standby LC in favor of the bank and get the required Credit Facility. This is how the Chinese buyer concluded their car importation deal successfully without blocking their cash funds or investing their own working capital. Read the success story on SBLC Transaction
Bronze Wing Trading Review by Mr. T'ao Peng
The client felt satisfied with our service. Also, they conveyed their sincere gratitude to us by writing a positive review on our website which is as follows:
Being trusted and genuine SBLC providers in Dubai, we have assisted more than 25,000 clients with their trade finance needs. By having our own accounts with European Banks, we can assure our clients that we will be their one-stop solution for all their trade finance needs.
For all your Standby Letter of Credit requirements, you can contact us at any time via email.