This provides assurance to lenders that they will be repaid, as the SBLC can be drawn upon in case of default by the borrower. In summary, the purpose of a standby letter of credit is to provide payment security, mitigate risks, facilitate trade, ensure contractual compliance, and offer ...
After signing an irrevocable letter of credit, the bank is liable to pay the amount to the seller, in case the client is not able to pay the amount...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a ques...