Various Things You Should Know About SBLC

 

A lot of people have a very little knowledge of the SBLC or the standby letter of credit. It is a letter in the form of guarantee that says the bank will pay on behalf of you. Let’s study about SBLC more deeply in this article.

Below are the few points mention about SBLC

Letters of credit or the Standby Letter of Credit (SBLC) is sometimes referred to as transferrable or negotiable. The issuing bank will pay a beneficiary or a bank that is nominated by the beneficiary.

SBLC or the Letter of Credits can be discounted but only if it is payable after 90 days or if it is transferrable.

In order to fund an SBLC or a Letter of Credit the bank has to receive typically any assets or cash as collateral in order to issue you a standby letter of credit.

There is no non-payment procedure under SBLC. The fee must be paid in order to obtain an SBLC.

In case, if the bank who has provided you the SBLC fails to pay, (which is pretty rare), in that case, another stronger bank will pay on behalf of you.

There are plenty of reasons why you should invest in an SBLC as they are quite beneficial and you get a lot of benefits out of the same. However, you need to make sure that you are getting the SBLC from a trusted bank and you understand everything properly before you fund an SBLC.

The SBLC is a great way to grow your business both nationally and internationally and you sh

Following Reasons to Start An Offshore Bank Account

 

An offshore bank account is an account which is set up outside the country of residence of the account holder. Offshore bank accounts are available to anyone who is interested. There are many reasons why one may choose to open an offshore banking account. Here are a few reasons you why you need to start an offshore bank account –

1. One of the main reasons for opening an offshore banking account is that developing countries are often characterized by political and economic instability. There might be situations where you may have to take some desperate measures which might affect your savings. By opening an offshore bank account you become client of a reputable multinational financial institution that provides additional safety and security in case of financial crisis. An offshore bank account reduces dilute your political risks. 

2. Some of the foreign offshore banks are far better than your country. They might have some better investment opportunities, better interest rates or sometimes even better finance systems. These offshore banks are much cautious and more responsible about your hard earned money.

3. Opening an account in an offshore bank will protect your assets from overzealous government agencies. So, to save your hard earning money you can deposit your assets in an offshore bank account without any hassles.

4. When you hold an offshore bank account, there is a benefit of currency diversification. It protects your purchasing power and internationalizes your savings. 

5. The interest rate for your savings is higher when you have an offshore bank account. When you do a bit of market research, you can see that there are banks in abroad, that pay a higher interests rate and that can benefit you a lot more than your domestic bank account.

6. Some of the offshore banks provide you health insurance and other services when you open a bank account. There are a lot of possibilities you get by opening an offshore bank account.

The Banks Instruments is providing you great opportunities of Offshore Bank Account Openings and you sure won’t like to miss the chance.

 

What is a ‘Performance Bond’ (PB)?

What is a ‘Performance Bond’ (PB)?
 A performance bond, also known as a contract bond that is written by a third-party guarantor, bank or other financial institution that guarantees the fulfillment of a particular contract as promised. Performance Bonds guarantee that the contractor will perform the contract as agreed. Performance bonds are important financial instruments to participants of building and construction projects.

The one and important reason why this performance bond is produced is so that the customer can be paid a specified amount of money if the contractor fails to perform or is unable to deliver the project as per established and the contract provisions.

Banks also recovers the payment on behalf of the customer if the contractor fails to deliver the contract in full. This type of bond can be on conditional or on demand.  Performance bond rates vary for a number of reasons, including the project’s total cost and the contractor’s credit and financial history.

How does Performance Bond Work?
As soon as a contractor gets a project from a client, they offer performance bond to act as protection against failure to deliver on their part. A third-party guarantor is involved to hold the contractor accountable for finishing the entire project as per their agreement with the customer.

Advantages of Performance bonds for Owners

Owners do not need to incur additional costs.

The owner of a project is assured of the completion of the project.

Performance Bond allows owners to retain their working capital.