A Standby Letter of Credit is different from a Letter of Credit. A standby letter of credit, abbreviated as SBLC, refers to a legal document where a bank guarantees the payment of a specific amount of money to a seller if the buyer defaults on the agreement. However, a Letter of Credit is the guarantee of payment when certain specifications are met and documents received from the selling party.

Answer given by Shubhamm Sir at 16-May-2023 04:45 PM