Know about Standby Letter Of Credit- an effective financial too

Standby Letter of Credit refers to an important financial tool important for every business owner. This tool assures the full payment on behalf of the bank if any client can't make the payment at the end. Hence, it is a great tool that can enhance the trustworthiness of any business owner. Understanding the importance of it, many business owners in Thailand show a great preference for the SLOC.  However, in the passage mentioned below, we make a brief discussion on Standby Letter Of Credit in Thailand. Continue reading and explore some significant information about it. 

What Is a Standby Letter of Credit (SLOC)?
SLOC also known as the Standby Letter of Credit is nothing but a legal document. The main aim of this document is to give a guarantee for the payment of the bank. This document assures that the bank will pay instead of the clients if they can’t make the payment. 

This option helps in felicitating several international trades between different unknown companies with individual rules and regulations.  It gives the assurance to the buyer about receiving the goods. But it does not offer any guarantee about the satisfaction of the buyer about the quality of goods.

There are basically two types of Letter of Credit. These varieties include financial SLOC and performance SLOC. For gathering a brief knowledge about them have a look at the below-mentioned part.

The performance SLOC
It is an effective Standby Letter of Credit in Thailand.  There are several obligations that remain included here. Cost, time, and quality are some of these obligations. If you find the failure of these obligations from the client’s part, the bank will take the whole responsibility instead of him.

The financial SLOC
It guarantees payment against any goods or services according to the agreement. For instance- any oil refining company can issue it for reassuring the seller of the crude oils. It is more required with International and large-scaled trades and transactions.

Now you might think about a reputable source that can issue you the SLOC. You can contact a reputable investment bank for availing this.

A trustworthy investment bank to contact
Are searching for a reputed investment bank for enjoying Standby Letter of Credit in Thailand? If yes, get in touch with  OXFORD Investment Bank Group - Bangkok, Thailand with no delay. This trustworthy investment bank offers this great service. You can click on oxfordinvestbank.com to know more about them.







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