A Stand By Letter of Credit or SBLC  is a payment guarantee issued by a bank or financial institution that can be used for a wide range of commercial and financial transactions. Typically it  acts as a  payment guarantee  of last resort if the  contracted obligations are not met or are defaulted upon.  A SBLC is a direct guarantee of the bank to pay the recipient on a client’s behalf if they default..
SBLC’s  also offer protection the seller (exporter, in getting paid, and the buyer  (importer), in receiving the goods  as agreed.