Non-Financial Standby Letter of Credit / Guarantee
These are irrevocable undertakings by a bank to make payment to the Beneficiary in the event the Applicant fails to perform non-financial contractual obligations
Security in case of performance default
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Provides security in case performance obligations are not met
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May be accepted as an alternative to providing cash as security against any breach of contract
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Our Trade Specialists can issue a Non-Financial Standby Letter of Credit (SBLC) or Guarantee on your behalf, in any country where we have a local presence
Get the security you need with a cross-border guarantee
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Offers security when you’re unsure of the applicant’s ability to deliver
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Ideal for international projects in which the Applicant is selling goods and services to foreign buyers or governments
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May help you secure contracts locally or in a foreign country
Standby Letter of Credit / Guarantee Process
- The Applicant and Beneficiary agree on a sales contract. A Standby Letter of Credit would be required to support the applicant’s obligations to pay for goods/services in the event of non-payment by other methods.
- The Applicant completes an Application for Standby Letter of Credit/Letter of Guarantee requesting Scotiabank to issue an SBLC/LG in favor of the Beneficiary.
- Scotiabank issues the Standby Letter of Credit and sends it to the Beneficiary’s Bank.
- The beneficiary’s Bank verifies the Standby Letter of Credit for authenticity and sends the original to the beneficiary.
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Frequently asked questions
For specific questions relating to Trade Finance, please contact
Amit Sharma
Director, Trade Finance, Commercial Sales
Email: amit2.sharma@scotiabank.com