Stand by l/c意思

"Stand by L/C" is a term used in international trade and finance, specifically in the context of letters of credit (L/Cs). The term "stand by" in this context means to be ready or available for immediate use or action. Therefore, a "stand by L/C" refers to a type of letter of credit that is available and ready to be used at any time, typically to guarantee payment in case of a default or to provide assurance for the performance of a contract.

A standby letter of credit (SBLC) is a form of guarantee that serves as a safety net for the exporter in case the buyer (importer) fails to fulfill their payment obligations as agreed upon in the sales contract. The SBLC is issued by a bank on behalf of the importer (buyer) and is addressed to the exporter (seller). It ensures that the exporter will receive payment as long as they can demonstrate that the terms of the L/C have been met and the importer has not met their payment obligations.

In summary, a stand by L/C is a type of letter of credit that is on standby, ready to be used as a guarantee or a means of payment if the original terms of a transaction are not met. It provides an additional layer of security for the exporter and is often used in high-value or complex international transactions.