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Import services

Standby documentary credit

Standby documentary credits

An international method of providing payment security.
More benefits. More flexible.

A standby DC performs similar functions to a bank guarantee, but is issued in a documentary credit format.

Why is this type of finance right for you?

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

Benefits

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

Contact us

HSBC Trade Services
24 Sir Baron Jayathilake Mawatha
Colombo 1
Sri Lanka
Call +94 114 793 855