How does the Non-Performing Letter of Credit work & its significance

The standby letter of credit is a legal document that comes with a certain purpose. The main goal of this document is to guarantee the payment of a bank to the seller. SLOC or Non-Performing Letter of Credit can felicitate all the international trades, especially between the unknown companies.

Performance and financial- these two are the main types of SLOC. Read the article, and get introduced to this excellent financial tool in brief.

Non-Performing Letter of Credit
Working methods of Non-Performing Letter of Credit

In most cases, it is sought by any specific business to get a contract. The contract works as a standby agreement, as the bank remains bounded to pay in the unwanted scenarios. It is true, banks or NBFCs give a guarantee about the payment.

But to get this, the beneficiary needs to make sure that the norms are followed rightly. For example- any NBFC or banks can refuse to make the payment if there is a delay in shipping.

The recipient of this guarantee needs to be sure that he is working with a capable company. And it will pay the bill for the finishing project.

Why Non-Performing Letter of Credit is so important?

For instance- if it is an agreement for payment within one month, and the payment is not given, the seller can present the SLOC to the buyer’s bank. Both for the seller and the buyer, a standby letter of credit is beneficial.

This one is extremely helpful for small businessmen. Most of the cases, such businesses find difficulty in competing with the reputed rivals. These letters help in adding credibility and avoid the upfront payment to the sellers.

As mentioned before, you need to contact a reputed NBFC or bank to acquire this. Check the following lines, and gather information about a reputed NBFC offering SLOC. Keep your trust in this reputed NBFC without any hesitation. 

Get the Non-Performing Letter of Credit from this reputed NBFC

A reputed NBFC can give you the best assistance when you think of choosing a Non-Performing Letter of Credit. Merchant Trade Guarantee Corporation Company Limited is a reliable NBFC you can keep your trust. It has been providing great services in different countries, such as Thailand, Singapore, Hongkong, Australia, India, and Malaysia.  Don’t hesitate to click on the link merchanttradecorp.com to gather more information about this trusted NBFC in detail.

Comments

Post a Comment

Popular posts from this blog

A basic knowledge of Import Letter of Credit in Thailand

Image
Letters of credit are a secure way of paying for goods in international trade. There is a concern between buyers and sellers in imports and exports as they are located in different countries. The buyer is afraid that the product will be misunderstood and the seller is afraid that the product will be priced. In this case, the letter of credit is the means by which the seller pays the price through the bank and guarantees the correct delivery of the goods to the buyer. Well, LC benefits both the importers and exporters, and today we will discuss on Import Letter of Credit in Thailand . Are you curious? Import letter of Credit is commonly used in international trade transactions, whereby the Issuing Bank promises to pay the Exporter. Yes, a letter of credit is mainly a kind of guarantee given by a bank through which the fidelity between the importer and the exporter is gained and they are assured that the seller will get the price of his product and the buyer is also assured tha
Read more

An Informative Discussion On Bank Guarantees in Thailand With Example

Image
It might seem a challenging task to enhance your business in the cut-throat business world of Thailand. Stop worrying now about increasing the earning, and opt for the bank guarantees in Thailand . It is a helpful means of purchasing goods from an unknown party. In the continuing lines of today’s article, we have tried to provide you with comprehensive knowledge on it. Continue reading. What do the bank guarantees mean? Let’s keep the thing simple. It is nothing but a legal promise. This document is all about demonstrating that a person comes with sufficient funds usable for the business transactions. Bank guarantees are available in bank or custody statements form. Commercial banks or NBFCs give these guarantees to the people remain involved in the transactions.  A significant fact of this guarantee is, this will be valid for a certain period. After crossing it, this document will be nothing more than a useless paper. Bank guarantees, available in two forms, come with a baggage of ben
Read more

Significance Of Non-Performing Letter Of Credit You Should Know

Image
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. 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 cre
Read more