Solutions
The right instrument for the commitment you need to secure.
Letters of credit, standby letters of credit and contractual guarantees answer different needs. We help you identify which one fits your contract, then prepare and coordinate the request.
At a glance
A simplified comparison. In practice, the wording of each instrument and the applicable rules matter more than its name.
| Instrument | Typical purpose | When it is paid | Commonly used rules |
|---|---|---|---|
| Documentary letter of credit | Paying the seller for goods or services | When compliant documents are presented | ICC UCP 600 |
| Standby letter of credit | Backing a payment or performance obligation | When the beneficiary makes a compliant demand after a default | ICC ISP98 or UCP 600 |
| Performance guarantee | Securing correct performance of a contract | On a compliant demand, as defined in the guarantee | ICC URDG 758 or local law |
| Advance payment guarantee | Securing the repayment of a down payment | On a compliant demand, as defined in the guarantee | ICC URDG 758 or local law |
Another type of guarantee?
Bid bonds, retention guarantees, payment guarantees or warranty bonds follow similar logic. Describe your need and we will tell you whether we can help.
Discuss your transactionHave a transaction that needs an LC, SBLC or guarantee?
Tell us about it in a few lines. We will reply with an honest view of the options and the next steps.
Or write to us at info@starallianceconsult.com