Standby Letter of Credit

A standby letter of credit (SBLC) guarantees the smooth process of buying goods overseas. An SBLC guarantees ultimate payment to an international supplier for recurring orders of merchandise. 

  • Doesn't tie up your cash flow – payment of goods is deferred until they are actually shipped or on an even longer term if pre-arranged
  • Helps your business establish credibility and financial integrity
  • Allows you to find international suppliers willing to do business with you

Benefits

  • Establish a solid reputation
  • Uninterrupted flow of merchandise
  • Facilitates order of goods
  • To simplify the process of ordering goods overseas without down payments or prepayments
  • To optimize your cash flow management deferring payment until or beyond shipment date
  • Assurance that your supplier has complied with his part of the agreement
  • To guarantee and demonstrate your ability to meet your contractual obligations to a third party
     

Once a standby letter of credit has been issued the bank has committed itself to pay out in case of a claim from the beneficiary.  As such it is considered a credit instrument and the same requirements apply as with loans and overdraft facilities.

Your Corporate Account Manager will explain what information to submit in your specific case.

Please see below a checklist of the most commonly required documents*:

  • Bank references certifying good credit standing and reputation
  • Recent financial statements
  • Cash flow projections per project phase
  • An investment budget
  • Fair own contribution to equity
  • A copy of construction offers
  • Appraisal reports of collateral required
  • A recent list of stock
  • A recent list of accounts receivable
  • Other as per checklist under Tab ‘General’*

* depending on which is applicable in your specific case

Sales & Customer Support

Account and service information are just a phone call away.
During business hours (8:00am to 4:30pm AST):
Aruba Bank Call Center: (+297) 527-7700
 
For questions regarding the product features and to apply, please call:
Aruba Bank Corporate Account Manager: (+297) 527-7774

Useful Tips

Sign up for Text Banking and inquire or receive regular updates on your current balance while on the go by simply using your mobile phone

Do you have questions?

Contact our Call Center during office hours at (297)527 7700.

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