If you're an importer that needs to issue a standby to cover a trade debt on open account transactions

If you're an exporter who requires standbys as a substitute for guarantees

This may be established as security for facilities granted at another branch or bank, usually to a subsidiary of the DC applicant

Governed by ICC International Rules (UCP600 or ISP98) rather than the separate legal/country regimes of guarantees

Generally one set of issuing bank charges although this will depend on the needs of the beneficiary/local market restrictions

Perceived as flexible to cancel or amend as they have a fixed expiry date