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Understanding the Standby Letter of Credit (SBLC) and Its Role in Corporate Finance
What is an SBLC? An SBLC (Standby Letter of Credit) is like a financial promise made by a bank on behalf of its client. It says: If my client fails to meet their obligation, I—the bank—will pay on their behalf. It’s not usually meant to be used, but it’s always there as a safety net. (i) The […]
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