Significance Of Non-Performing Letter Of Credit You Should Know

Non-performing Letter of Credit is nothing but a legal document that a bank issues on the behalf of the clients. Non-performing letter of credit, also known as SLOC (Standby Letter of Credit) assures the payment on the client’s behalf if any client cannot fulfill the agreement. Like all places all over the world, in Thailand, this letter of credit provides security in business transactions. Feeling interested to know about non-Performing letter of credit in Thailand? Go through the passage mentioned below and gather significant information about this potent financial tool.
Merchant Trade Guarantee Corporation Company Limited
Importance of Non-Performing Letter of Credit
Standby letter of credit is important and beneficial both for the sellers and buyers. Go through the passage mentioned below and know the significance of the standby letter of credit in brief.
  • SLOC presents a significant role in the business field.  According to any specific agreement, if the client does not pay, the seller can provide a Standby letter of credit to the buyer’s bank. In this way, the seller can remain assured about the payment. Nonperforming letter of credit is important for another cause as well. It lessens the risk cancelation of any order.
  • This letter of credit gives confidence to small business holders. There are a lot of small companies that find it difficult to complete with big and reputed companies. If you are own a small firm in Thailand, you can go for the non-Performing Letter of Credit. It will add more reliability in the bidding of any project and will help to avoid direct payment options to the seller as well.
  • A non-performing letter of credit assures buyers that they will get all products or goods mentioned in the document. Let’s see an instance. Suppose a contractor commits for a building construction and fails to perform his task. The non-performing letter of credit can help to resolve this issue. If the client gives the performance SLOC to the bank, it will resolve this problem.
A trustworthy NBFC you can contact
A non-Banking Financial company is the best place to approach if you want to avail non-Performing Letter of Credit in Thailand. Merchant Trade Guarantee Corporation Company Limited is a trustworthy NBFC you can rely on.  It is one of the most eminent NBFC that has been handled different financial services since 2006. You can click on the link merchanttradecorp.com to gather more information about this reputed NBFC.
Location: Soi 41, Khwaeng Bang Mot, Khet Chom Thong, Krung Thep Maha Nakhon 10150, Thailand

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