Export of aluminum ingots

Export of aluminum ingots

Difference between LC and SBLC

In business, there are different definitions, each of which will include a series of possibilities for the seller or the buyer. Knowing these meanings is mandatory for merchants.

The common point of all export guarantees is the assurance of the buyer and seller of a risk-free transaction.

The most common use is to ask suppliers of goods and receivers of services (buyers) to arrange a letter of credit from their banks to ensure timely and correct payment.

Types of LC (financial instrument in trade)

There are several types of LC, of ​​which SBLC is the most common. Many people get confused because they don’t know the difference between LC and SBLC very well.

Differences between these two financial instruments are clarified to protect the interests of sellers or suppliers for their buyers who may belong to different countries.

Another thing you should know about is the letter of credit.

What is a letter of credit?

A letter of credit is a guarantee for a seller that he will receive timely as well as correct payments from customers. It is a financial instrument that is very popular in international trade.

In today’s business, buyers are not personally known to suppliers, and also  purchases are made through an intermediary company. The letter of credit is a convenient cover and assurance to the supplier that he will not suffer any special losses due to non-payment or default of a part of it.

Payment method to the supplier
The issuing bank starts the transfer of the funds that have been deposited with the bank.
after handing over to the buyer under the conditions specified in the promissory note, depositing the money to the supplier. Of course, the bank will also start the deposit before the buyer confirms the complete receipt of the goods according to the terms of the contract, and will not make a deposit to the supplier until then.

In this way, the bank also protects the buyer’s money and none of the parties will suffer any loss.

LC methods

There are mainly two types of LC these days

Documentary letter of credit and standby letter of credit. While the DLC is dependent on the performance of the provider.
the Standby Letter of Credit applies when there is…
non-performance or default on the part of the buyer. DLC is implemented with the expectation that the supplier will fulfill part of its commitment. . On the other hand, it is expected that the SBLC will not be drawn by the beneficiary.

SBLC

SBLCs are highly flexible financial instruments which are also called sui generis. They are very versatile and can be used with modifications to suit the interests and needs of buyers as well as sellers. The principle of SBLC is that the Issuing Bank performs its performance in the event of the buyer’s default or default. This is the confidence of the supplier in the situation that he does not know the buyer personally or has not had previous business experience with him. However, the beneficiary (supplier) must provide proof or evidence of non-performance by the buyer to obtain payment through SBLC. This evidence is in the form of a letter that fully complies with the language of the contract as well as the consent of the bank.

our company

valid Aluminum (production of aluminum products)

*Types of thermal, normal, and curtain wall profiles, types of louvres*
Valid Aluminum Co., Tehran office

*Has a professional and experienced team in the field of implementation and supply of tools

* Production of special molds

* Supply of goods inside and outside the country

* Has active offices in Tehran and Karaj

* Manufactured product made from billet 6063

* Manufactured goods made from alloy billet at a reasonable price

*Experienced consulting team in the field of implementation and supply of tools

*Has active workers which respond to questions that happen for you to have about our products

*our company offers a lot of diffrent informations about the products within the range of it’s works

*by buying products from our company getting the materials that you want you’re almost garenteed to get them at a cheeper price then the other companies

*our company also offers even more information about diffrent kinds of products that you can reach by going to the sites that belong to Valid Aluminum

*our community is a hard working one so we would like it to be treat as such

*the way of communication could be through the apps like Whatsapp and (telegram: +989163079083) which we have the most active members there and
for cell calls (+989127351907)

* our company and their CEO has tried really hard to have the out most professionality and so, they have achived it

*when it come to the time for selling the products we have the out most trust to you and we expect it in return

validaluminum.com

Curtainwallco.com
cell phone :
021-91013538
021-66558279