Brief introduction Standby letter of credit is a independent undertaking by the bank to pay the beneficiary a certain sum of money within a specified period if the applicant fails to fulfill his contractual or other obligations of an underlying transaction. It is usually used to secure either a financial or performance obligation of the principal.
Characteristic Advantages 1. Solve the problem of mutual mistrust between transaction parties. With good reputation, ICBC (USA) involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.
2. Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.
Target Clients Customers that demand independent undertaking on following types of transactions: Performance, Advance Payment, Customs Bonds, Bid Bonds, Financial Facility, and Direct Trade Payment.