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Banker’s Guarantee / Standby Letter of Credit (SBLC)

Provide assurance and peace of mind to your beneficiaries

Banker’s Guarantee / Standby Letter of Credit (SBLC)

Provide assurance and peace of mind to your beneficiaries

    At a Glance
    DBS can issue a Banker's Guarantee / Standby Letter of Credit (SBLC) to cover your payment obligations in the contract, reassuring your buyers or sellers of payment no matter what happens.
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    An independent undertaking

    Banker’s Guarantees are independent undertakings which help to mitigate payment risks for the beneficiary

    Simply submit the DBS Banker’s Guarantee application form on behalf of your business at one of our Trade Collection Branches or SME Banking Centres. Alternatively, you can apply via DBS IDEAL.

    money

    Added assurance

    We will pay to your beneficiaries upon receipt of a claim that complies with the terms of the business bank guarantee

    Features & Benefits
    Uses of Banker's Guarantee / Standby Letter of Credit (SBLC)
    • Payment Guarantee
      Protects the beneficiary if the applicant fails to honour the payment under their contract.
    • Bid Bond
      Enables the applicant (bidder) to use DBS credit to support the bid. Can also be used to assure the successful bidder that the contract will be met.
    • Performance Bond
      Some bidding contracts require the successful bidder to provide a performance guarantee to protect against a default.
    • Financial Guarantee
      This helps the applicant’s overseas subsidiaries obtain financing or credit facilities from banks.
    Conditions of Banker's Guarantee
    • Can be issued by DBS Hong Kong or our overseas branches/correspondents, according to the guarantee format provided by the applicant.

    • Banker's Guarantees issued in favour of beneficiaries must be for a specific amount, expiry date, and claim period.

    • Banker's Guarantees should not be assigned to other parties.

    • Banker's Guarantees are subject to Hong Kong S.A.R. law and the jurisdiction of the Hong Kong S.A.R. courts.
    How it Works

    Flowchart on how to apply for DBS Banker’s Guarantee / Standby Letter of Credit (SBLC)

    Fees
    How to Apply

    If you have a trade credit facility with us:

    Download PDF
    Smart Form (effective from 29 July 2024)
    Presentation of Demand and Documents under BG or Standby LC
    Trade Finance Service Fee Schedule
    FAQs
    What is a Banker’s Guarantee / Standby Letter of Credit (SBLC)?

    A Banker’s Guarantee / Standby Letter of Credit (SBLC) is essentially a legal document that acts as a guarantee on the bank’s behalf should a business not be able to pay a seller. If an SME were to default on an agreement with a seller, the bank will honour the payment commitment.
    When do I apply for a Banker’s Guarantee / Standby Letter of Credit?

    The beneficiary will specify what to apply for.
    How do I complete the application form?

    If you require assistance completing your Banker’s Guarantee / Standby Letter of Credit (SBLC) application form for your business, please call us at 2290 8068 for assistance.
    Where do I find the application format?

    The format is usually provided by the beneficiary, so please ask them for a copy.
    Where do I collect my Banker’s Guarantee / Standby Letter of Credit (SBLC)?

    Our trade operations officer will contact you to arrange your preferred collection point.
    Get in Touch
    DBS Online Account Opening for Business
    Apply for a Loan
    Contact DBS BusinessCare

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