{"id":8428,"date":"2016-09-15T17:04:54","date_gmt":"2016-09-15T17:04:54","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=8428"},"modified":"2025-01-29T13:05:45","modified_gmt":"2025-01-29T13:05:45","slug":"standby-letter-of-credit-sblc","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/","title":{"rendered":"Standby Letters of Credit (SBLC \/ SLOC) &#8211;  2025 Jargon Buster"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-standby-letters-of-credit-sblc-sloc-2025-jargon-buster\">\n        Standby Letters of Credit (SBLC \/ SLOC) &#8211;  2025 Jargon Buster    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 29 Jan 2025<\/div>\n                <div>15 Sep 2016 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto country-quick-link is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:35%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-most-popular\">Most popular<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/\">\n        Introduction to Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/benefits-of-letters-of-credit\/\">\n        Benefits of Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/handling-document-discrepancies\/\">\n        Handling Document Discrepancies      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/swift-messaging-types\/\">\n        SWIFT Messaging Types      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/parties-involved\/\">\n        Parties Involved      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/financial-crime-fraud-and-sanctions\/\">\n        Financial Crime, Fraud &#038; Sanctions      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/documentary-collections\/courses\/\">\n        Letters of Credit Courses      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:22%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-research-and-guides\">Research and Guides<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/ucp-600-ultimate-guide\/\">\n        UCP 600 \u2013 Ultimate Guide      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/letters-of-credit-research-2022\/\">\n        Research      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/baft-guide\/\">\n        BAFT &#038; TFG Guide      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/digitalisation-and-the-future\/\">\n        Digitalisation &#038; the Future      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/documentary-collections\/\">\n        Documentary Collections      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/finance-products\/promissory-notes-bills-of-exchange\/\">\n        Promissory Notes and Bills of Exchange      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:22%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-rules\">Rules<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/letters-of-credit-rules\/\">\n        Letters of Credit Rules      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/ucp-600\/\">\n        UCP 600      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/eucp\/\">\n        eUCP Explained      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/urc-522-eurc\/\">\n        URC 522 &amp; eURC      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/isbp-821\/\">\n        ISBP 821      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/presentation-of-documents\/\">\n        Presentation of Documents      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/dispute-resolution\/\">\n        Dispute Resolution      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:22%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-types\">Types<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/types-of-credit\/\">\n        Types of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/restricted-letters-of-credit\/\">\n        Restricted Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/difference-between-lcs-and-bank-guarantees\/\">\n        Letters of Credit vs Bank Guarantees      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\">\n        Standby Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/sight-lcs\/\">\n        Sight Letters of Credit      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/adbea0e7d528d8822bada7096c1e6ea9?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Mark Abrams<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Mark heads up the trade finance offering at TFG where\u00a0his team focuses on bringing in alternative structured finance to international trading companies.\">\n        Mark heads up the trade finance offering at TFG where\u00a0his team focuses on bringing in alternative structured finance to international trading companies.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=74\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n      <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Download our our free Letters of Credit guide<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='Letters-of-Credit' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-190x190.jpg 190w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit.jpg 600w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F8428\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/www.libf.ac.uk\/professional-qualifications\/trade-and-transaction-banking\/certificate-for-documentary-credit-specialists-cdcs\/?utm_source=TFG+-+CDCS&amp;utm_medium=MPU+banner&amp;utm_campaign=TFG+-+CDCS+campaign\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-1024x1024.gif\" alt=\"\" class=\"wp-image-126577\" style=\"width:256px;height:256px\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-1024x1024.gif 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-300x300.gif 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-150x150.gif 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-768x768.gif 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-320x320.gif 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-370x370.gif 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-414x414.gif 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-200x200.gif 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-250x250.gif 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-162x162.gif 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-159x159.gif 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-123x123.gif 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-190x190.gif 190w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>ADVERTISEMENT<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-standby-letter-of-credit-sblc-sloc\">What is a Standby Letter of Credit (SBLC \/ SLOC)?<\/h2>\n\n\n\n<p class=\"bg-tale rounded p-24 h-auto\" style=\"font-size:16px\">A Standby Letter of Credit (SBLC \/ SLOC) is a guarantee that is made by a bank on behalf of a client, which ensures payment will be made even if their client cannot fulfill the payment. It is a payment of last resort from the bank, and ideally, is never meant to be used.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How can a contractual SBLC be used and how does it work?<\/h2>\n\n\n\n<p style=\"font-size:16px\">An SBLC is frequently used as a safety mechanism for the beneficiary, in an attempt to hedge out&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/commodity-trading\/ctrm-software\/\">risks<\/a>&nbsp;associated with the trade. Simplistically, it is a guarantee of payment which will be issued by a bank on the behalf of a client. It is also perceived as a \u201cpayment of last resort\u201d due to the circumstances under which it is called upon. The SBLC prevents contracts from going unfulfilled if a business declares bankruptcy or cannot otherwise meet financial obligations.<\/p>\n\n\n\n<p style=\"font-size:16px\">Furthermore, the presence of an SBLC is usually seen as a sign of good faith as it provides proof of the buyer\u2019s credit quality and the ability to make payment. In order to set this up, a short underwriting duty is performed to ensure the credit quality of the party that is looking for a letter of credit. Once this has been performed, a notification is then sent to the bank of the party who requested the&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/\" target=\"_blank\" rel=\"noreferrer noopener\">Letter of Credit<\/a>&nbsp; (typically the seller).<\/p>\n\n\n\n<p style=\"font-size:16px\">In the case of a default, the counter-party may have part of the finance paid back by the issuing bank under an SBLC. Standby Letter of Credits are used to promote confidence in companies because of this.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"690\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1.jpg\" alt=\"\" class=\"wp-image-100982\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-300x202.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-768x518.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-320x216.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-370x249.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-414x279.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-445x300.jpg 445w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-297x200.jpg 297w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-371x250.jpg 371w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-240x162.jpg 240w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-236x159.jpg 236w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-183x123.jpg 183w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/03\/boats-cargo-cargo-container-753331-1024x690-1-282x190.jpg 282w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How can you apply for a Standby Letter of Credit?<\/h2>\n\n\n\n<p style=\"font-size:16px\">There are many aspects that a bank will take into consideration when applying for a Standby Letter of Credit, however, the main part will be whether the amount that is being guaranteed can be repaid. Essentially, it is an insurance mechanism to the company that is being contracted with.<\/p>\n\n\n\n<p style=\"font-size:16px\">As it is insurance, there may be collateral that is needed in order to protect the bank in a default scenario \u2013 this may be with cash or assets such as property. The level of collateral required by the bank and by the size of the SBLC will largely depend on the risk involved, and the strength of the business.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Other Application steps<\/h2>\n\n\n\n<p style=\"font-size:16px\">There are other standard due diligence questions asked, as well as information requests regarding assets of the business and even possibly the owners. Upon receipt and review of the documentation, the bank will typically provide a letter to the business owner. Once the letter has been provided, a fee is then payable by the business owner for each yeah that the Standby Letter of Credit remains outstanding.<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the fees for Standby Letters of Credit?<\/h2>\n\n\n\n<p style=\"font-size:16px\">It is standard for a fee to be between 1-10% of the SBLC value. In the event that the business meets the contractual obligations prior to the due date, it is possible for an SBLC to be ended with no further charges.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the difference between SBLCs and LCs?<\/h2>\n\n\n\n<p style=\"font-size:16px\">A Standby Letter of Credit is different from a Letter of Credit. An SBLC is paid when called on after conditions have not been fulfilled. However, a Letter of Credit is the guarantee of payment when certain specifications are met and documents received from the selling party.<\/p>\n\n\n\n<p style=\"font-size:16px\">Letters of credit promote trust in a transaction, due to the nature of international dealings, distance, knowledge of another party and legal differences.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do SBLCs work in Cross-Border trade?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Where goods are sold to a counter-party in another country, they may have used an SBLC to ensure their seller will be paid. In the event that there is non-payment, the seller will present the SBLC to the buyer\u2019s bank so that payment is received.<\/p>\n\n\n\n<p style=\"font-size:16px\">A performance SBLC makes sure that the criteria surrounding the trade such as suitability and quality of goods are met.<\/p>\n\n\n\n<p style=\"font-size:16px\">We sometimes see SBLCs in construction contracts as the build must fulfill many quality and time specifications. In the event that the contractor does not fulfill these specifications then there is no need to prove loss or have long protracted negotiations; the SBLC is provided to the bank and payment is then received.<\/p>\n\n\n\n<p><\/p>\n\n\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"block-faq overflow-hidden h-auto py-10\">\n  <div class=\"container w-auto\">\n    <div class=\"d-grid grid-col-1 grid-col-xs-2 mb-24\">\n      <h3 id=\"heading-faq\" class=\"not-for-table-content fw-700 \">FAQ<\/h3>\n          <\/div>\n    <div class=\"d-grid grid-col-4 grid-col-xs-1 gap-24\">\n              <div class=\"d-flex overflow-x-auto hide-scrollbar xs-flex-direction-row flex-direction-column gap-24 list-question\">\n                      <div class=\"single-anwser active pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What is a negotiable or transferrable letter of credit?\">\n                What is a negotiable or transferrable letter of credit?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Letters of credit are sometimes referred to as negotiable or transferrable. The issuing bank will pay a beneficiary or a bank that is nominated by the beneficiary. As the beneficiary has this power, they may \u2018transfer\u2019 or \u2018assign\u2019 the proceeds of a letter of credit to another company.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"Can a letter of credit also be discounted (like an invoice)?\">\n                Can a letter of credit also be discounted (like an invoice)?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Yes \u2013 if it is a transferable letter of credit and it is a deferred instrument then this may be likely. This is so that the funder will provide the beneficiary with a discounted value just after the terms of the letter of credit have been fulfilled.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"How can you fund a Standby Letter of Credit?\">\n                How can you fund a Standby Letter of Credit?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>In order to issue a standby letter of credit, a bank will typically require a pledge of cash as collateral. There is a fee that is collected for this service, which is usually priced at a percentage of the letter of credit value.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"How are Letters of Credit governed?\">\n                How are Letters of Credit governed?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>The International Chamber of Commerce Uniform Customs and Practice for Documentary Credits governs the way in which these instruments operate.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"Could there be non-payment under an SBLC?\">\n                Could there be non-payment under an SBLC?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>An SBLC will be paid in the event that the bank providing the instrument is still in operation and the beneficiary meets the criteria under the letter.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What if the bank fails or I don\u2019t trust it?\">\n                What if the bank fails or I don\u2019t trust it?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>When there is genuine worry that the bank will not pay out, then a confirmed letter of credit may be used. This will be where a \u2018stronger\u2019 bank confirms the letter of credit.<\/p>\n<\/div>\n                          <\/div>\n                  <\/div>\n        <div class=\"col-span-3 col-span-xs-1 detail-anwser-block hide-scrollbar bg-tale rounded p-24\">\n          <h4 class=\"fs-20 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What if the bank fails or I don\u2019t trust it?\">\n            What is a negotiable or transferrable letter of credit?          <\/h4>\n          <div class=\"detail-anwser fs-16\"><p>Letters of credit are sometimes referred to as negotiable or transferrable. The issuing bank will pay a beneficiary or a bank that is nominated by the beneficiary. As the beneficiary has this power, they may \u2018transfer\u2019 or \u2018assign\u2019 the proceeds of a letter of credit to another company.<\/p>\n<\/div>\n          <a href=\"\" class=\"detail-link text-black fs-12 small-link-arrow-right text-right mr-0 d-hidden\">\n            <span><\/span>\n          <\/a>\n        <\/div>\n          <\/div>\n  <\/div>\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<section class=\"full-width block-slider_with_text py-10\" data-block=\"slider_with_text\" data-theme=\"dark\">\n  <div class=\"container overflow-hidden\">\n    <div class=\"slider-text-block\">\n      <div class=\"slider-text-block-container\">\n        <h2 id=\"heading-explore-our-financing-solutions\" class=\"elipsise-2-line word-wrap not-for-table-content\">\n          Explore our financing solutions        <\/h2>\n        <span class=\"block-subtitle elipsise-2-line word-wrap\">How TFG are helping to finance tomorrow&#8217;s trade<\/span>\n                  <a href=\"\/get-trade-finance\/\" class=\"button-standart button-standart-blue\">\n            <span>Find out more<\/span>\n          <\/a>\n              <\/div>\n    <\/div>\n    <div class=\"swiper-container\" data-slides-desktop=\"2\" data-slides-tablet=\"1.5\" data-slides-mobile=\"1\" data-space-between=\"32\">\n      <div class=\"swiper-wrapper\">\n                  <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/metals-trader\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Metals trader &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/metals-trader\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-768x311.jpg 768w, 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(max-width: 869px) 100vw, 869px\" \/>                  <\/a>\n                <\/div>\n                          <\/div>\n          <\/div>           <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/soft-commodities-trader\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Soft commodities trader &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/soft-commodities-trader\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-320x130.jpg 320w, 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<\/a>\n                <\/div>\n                          <\/div>\n          <\/div>           <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/food-distribution-company\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Food distribution company &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/food-distribution-company\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Food-distribution-company-\u2013-A-case-study2-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/>                  <\/a>\n                <\/div>\n                          <\/div>\n          <\/div>           <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/energy-trading-group\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Energy trading group &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/energy-trading-group\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Energy-trading-group-\u2013-A-case-study2-414x168.jpg 414w, 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A Standby Letter of Credit (SBLC \/ SLOC) is a guarantee that is made by a bank on behalf of\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":84,"featured_media":110528,"parent":10611,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[2129],"class_list":["post-8428","page","type-page","status-publish","has-post-thumbnail","hentry","category-letters-of-credit"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Standby Letters of Credit (SBLC \/ SLOC) - 2025 Jargon Buster [UPDATED]<\/title>\n<meta name=\"description\" content=\"[UPDATED 2025] A Standby Letter of Credit (SBLC \/ SLOC) is seen as a guarantee that is provided to a potential buyer or contractor. An SBLC is payable when called upon by the beneficiary and may be used in international trades or could sit as an element of a construction contract. We explain the application process, fees, examples and FAQs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Standby Letters of Credit (SBLC \/ SLOC) - 2025 Jargon Buster\" \/>\n<meta property=\"og:description\" content=\"[UPDATED 2025] A Standby Letter of Credit (SBLC \/ SLOC) is seen as a guarantee that is provided to a potential buyer or contractor. An SBLC is payable when called upon by the beneficiary and may be used in international trades or could sit as an element of a construction contract. We explain the application process, fees, examples and FAQs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\" \/>\n<meta property=\"og:site_name\" content=\"Trade Finance Global\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/tradefinanceglobal\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-29T13:05:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"869\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@tradefinglobal\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\",\"url\":\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\",\"name\":\"Standby Letters of Credit (SBLC \/ SLOC) - 2025 Jargon Buster [UPDATED]\",\"isPartOf\":{\"@id\":\"https:\/\/www.tradefinanceglobal.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Standby-Letters-of-Credit-SBLC-_-SLOC-\u2013-2024-Jargon-Buster-UPDATED.jpg\",\"datePublished\":\"2016-09-15T17:04:54+00:00\",\"dateModified\":\"2025-01-29T13:05:45+00:00\",\"description\":\"[UPDATED 2025] A Standby Letter of Credit (SBLC \/ SLOC) is seen as a guarantee that is provided to a potential buyer or contractor. An SBLC is payable when called upon by the beneficiary and may be used in international trades or could sit as an element of a construction contract. 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