Key Providers for Standby Letters of Credit in Import/Export
By Taimour Zaman, Founder, AltFunds Global
Major Commercial Banks Lead the Market
When seeking standby letters of credit for international trade transactions, accredited investors typically turn to established commercial banks for their needs. These institutions offer the creditworthiness and global reach necessary for complex import/export operations.
JPMorgan Chase stands as the largest provider in the US market. A Standby Letter of Credit (LC) is a globally accepted financial instrument¹. Standby Letters of Credit—Issuance of Local Bank Guarantees according to JPMorgan’s trade finance documentation. Their global network makes them particularly suitable for large-scale international transactions.
Citibank maintains a strong positioning in trade finance, especially for cross-border deals. The bank’s international presence spans over 90 countries, providing the infrastructure needed for complex standby letter arrangements.
Bank of America and Wells Fargo round out the top-tier providers. Both offer comprehensive trade finance solutions through their commercial banking divisions, although their international reach varies significantly, with JPMorgan and Citi having a more global scope.
Regional and International Options
HSBC operates as a major player in international trade finance. HSBC Letters of Credit help you mitigate payment risks related to international trade². Letters of credit, documentary collections, and guarantees – Corporations and Institutions. Their London-based operations provide strong connections to European and Asian markets, making them valuable for importers working with suppliers in these regions.
Deutsche Bank offers specialized trade finance solutions, including standby letters of credit, primarily through its corporate banking division. Trade finance solutions that minimise risks for clients: Learn more about our tailored Guarantees, Letters of Credit, and Documentary Collections³. Differences between Export Letters of Credit (LC) and Import Letters of Credit (LC)
First Citizens Bank has emerged as a competitive provider, particularly for mid-market companies. Their standby letter services target businesses looking for alternatives to the major money center banks.
Understanding Standby Letters vs. Traditional Letters of Credit
Standby letters function differently from traditional documentary letters of credit. A standby letter of credit means the bank only makes a payment if the buyer is unable to do so. This means that standby LCs function more like insurance contracts⁴ Letters of Credit: enabling you to mitigate risk and access finance in international trade | Solutions | HSBC This makes them particularly valuable for import/export transactions where payment security is the primary concern.
Key Selection Criteria
Credit facility requirements vary significantly between providers. Most major banks require established relationships and substantial creditworthiness before issuing standby letters of credit. Annual fees typically range from 1% to 3% of the loan amount, depending on the client’s credit profile and the depth of their relationship.
Processing timelines also differ. Established clients with existing credit facilities can often secure standby letters within 5-7 business days. New relationships, however, may require 2-3 weeks for approval and documentation.
Next Steps
Selecting the right SBLC provider requires careful evaluation of your specific trade finance needs, credit profile, and international transaction requirements. The complexity of these arrangements often benefits from expert guidance.
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Sources List
- JPMorgan Chase. (2025). Standby Letters of Credit—Issuance of Local Bank Guarantees. Retrieved from https://www.jpmorgan.com/content/dam/jpm/commercial-banking/documents/international-banking/standby-letters-credit.pdf
- HSBC. (2025). Letters of Credit: enabling you to mitigate risk and access finance in international trade. Retrieved from https://www.business.hsbc.com/en-gb/solutions/letters-of-credit
- Deutsche Bank. (2025). Letters of credit, documentary collections, and guarantees. Retrieved from https://corporates.db.com/solutions/corporate-bank-solutions/trade-finance/letters-of-credit-documentary-collections-and-guarantees
- Trade Finance Global. (2025, July 7). Letters of Credit (LCs) – TFG 2025 Ultimate Guide & Free Video. Retrieved from https://www.tradefinanceglobal.com/letters-of-credit/
Compliance Disclaimer
This publication is provided strictly for educational and informational purposes. It does not constitute, and should not be construed as, an offer, solicitation, or recommendation to purchase, sell, or otherwise engage in any transaction involving standby letters of credit (SBLCs), bank guarantees, or any other financial instruments.
AltFunds Global AFG AG is not a bank, broker-dealer, or licensed financial intermediary under Swiss law. All references to financial instruments, providers, or case studies are illustrative in nature and are not to be interpreted as investment advice or a guarantee of performance.
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