Non-Financial Standby Letter of Credit / Guarantee

These are irrevocable undertakings by a bank to make payment to the Beneficiary  in the event the Applicant fails to perform non-financial contractual obligations

Security in case of performance default

Provides security  in case performance obligations are not met

May be accepted as an alternative to providing cash as security against any breach of contract

Our Trade Specialists can issue a Non-Financial Standby Letter of Credit (SBLC) or Guarantee on your behalf, in any country where we have a local presence

Get the security you need with a cross-border guarantee

Offers security when you’re unsure of the applicant’s ability to deliver

Ideal for international projects  in which the Applicant  is selling goods and services to foreign buyers or governments

May help you secure contracts locally or in a foreign country

Standby Letter of Credit / Guarantee Process

  1. The Applicant and Beneficiary agree on a sales contract. A Standby Letter of Credit would be required to support the applicant’s obligations to pay for goods/services in the event of non-payment by other methods.

  2. The Applicant completes an Application for Standby Letter of Credit/Letter of Guarantee requesting Scotiabank to issue an SBLC/LG in favor of the Beneficiary.

  3. Scotiabank issues the Standby Letter of Credit and sends it to the Beneficiary’s Bank.

  4. The beneficiary’s Bank verifies the Standby Letter of Credit for authenticity and sends the original to the beneficiary.

Frequently asked questions

For specific questions relating to Trade Finance, please contact

Amit Sharma
Director, Trade Finance, Commercial Sales
Email: amit2.sharma@scotiabank.com