About Us:
We understand that every client’s situation is unique, and we’re here to provide solutions to meet those needs. Our team works closely with you to understand your requirements and provide the best solution. We pride ourselves on our professionalism and dedication to transparent communication throughout the process.
Our Products
Fundraising & Financial Advice
Assistance in Banking Transaction
International Financial Engineering
Commodity Trading & Digital Assets
Bank instrument Lease & Purchase
Bank instrument Monetization/Trade
Bank Draft (BD)
Bank Guarantee (BG)
Standby Letter of Credit (SBLC)
EVERETTE D. HULL MANAGING DIRECTOR
EXECUTIVE MANAGEMENT BIO
EVERETTE HULL is a financial professional with 45 years of demonstrated expertise in originating, developing, structuring, and marketing financing transaction solutions, totaling over $15 billion, closing over 500 transactions.
Mr. Hull’s areas of concentration have included private placements and financial advisory services to middle-market companies, project developers and financial institutions throughout the Southwest, Nationally and in Mexico/LATAM. He was a licensed NASD/FINRA and MSRB broker/dealer General and Municipal Securities Principal for 30 years and a former practicing securities attorney.
Advantages of SBLC
Lack of trust and fear of payment default is one of the key reasons why some international trade deals don’t take off. An SBLC is the best way to bridge the gap and ensure that all the worst-case scenarios are dealt with.
Once a reputed financial institution lends someone a standby letter of credit, they’re practically making a statement about their and their company’s financial situation. This goes a long way in establishing creditworthiness.
Businesses that are just starting might fail to land big projects because they have no legacy to back them. Companies often get cold feet about working with such individuals or businesses. However, with an SBLC, they have a solid backing of a reputed financial institution and hence can successfully compete for prestigious contracts and big-ticket projects.
The fundamental difference between a Letter of Credit and a standby letter of credit is that the former can be uncashed or discounted during a trade transaction. While an SBLC is just a safety measure and is only uncashed if any of the parties fail to honor the agreement, one cannot get an SBLC discounted if there is no default. Most trades are honored by all the parties without any irregularities and hence the SBLC is discontinued once the trade takes place.
On the other hand, while a bank guarantee only protects the buyer against a non-performing seller, SBLCs protect both the buyer and the seller — depending on the type of SBLC issued.
Testimonials
Today the demand for high quality merger, acquisition, and corporate finance advisory services by middle market companies has never been greater.
These businesses - with sales generally between $5 and $150 million face growth, liquidity and financing issues rarely addressed by larger corporations.
USA
FAQs on SBLC
Standby Letters of Credit are highly secure documents that guarantee the payment for the goods in case the buyer defaults or is unable to pay as per the agreement.
An SBLC is used as a safety mechanism in a trade to ensure that the agreement is honored by both parties.
Yes, an SBLC can be confirmed just like a normal letter of credit.
The SBLC is an irrevocable document and hence it cannot be canceled without the consent of all the parties involved.
Yes, SBLC can be monetized.
An SBLC is transferable in that the beneficiary can sell or assign the rights to the proceeds from the SBLC, but the beneficiary remains the only party who can demand payment of the SBLC.
Many companies and service providers claim that they do provide SBLC without upfront payment. However, experts call it a myth and say that there can be no SBLC without any upfront payment since the risk is too high.
Yes, SBLC is legal and fully operational in India when issued by banks certified by the Reserve Bank of India.
Yes, an SBLC can be discounted and is often considered a great investment instrument.
