StanbyLetter Of Credit

Standby Letter of Credit (SBLC / SLOC)

A Standby Letter of Credit (SBLC / SLOC) is a guarantee that is made by a bank on behalf of a client, which ensures payment will be made even if the client cannot fulfil the payment. It is a payment of last resort from the bank, and ideally, is never meant to be used. A standby letter of credit can be abbreviated either as SLOC or SBLC.