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Standby LC/Guarantee Issuance
 @GlobalTrade Standby LC/Guarantee Issuance (LG) System allows corporates to improve management of Standby LC/Guarantees across all their business units and banks, and simplifies the allocation and monitoring of credit facilities. The system provides a structured approval process based on user-configured authorization levels. Treasury is able to offer business units the flexibility of electronic application while controlling the selection of the issuing banks. Authorized banks can access the system to receive authenticated instructions to issue a new LG or amend an existing LG and communicate with the corporate on reductions and any other matters concerning the transaction. Alternately, communication can be done via SWIFT or email
Authorized banks can access the system to receive authenticated instructions to issue a new LG or amend an existing LG and communicate with the corporate on reductions and any other matter concerning the transaction.
Benefits for corporates
- Real-time monitoring of bank, country, project, and counter-party exposure
- Lower bank fees due to use of larger facilities shared by several business units within the group
- Instant visibility into the company’s global Standby LC/Guarantee database
- Ability to quickly react to changing market conditions due to electronic access to information
- Quicker access to information due to on-line availability of applications, issued guarantees, amendments, reductions, and underlying contract documentation
- Reduced operational and financial risk
Benefits of SWIFT Interface
- @GlobalTrade Standby LC/Guarantee Issuance System can connect the corporate treasury and all business units to multiple banks through the SWIFT network. @GT SWIFT Connector submits LG applications directly to the issuing bank using SWIFT MT798 Messages. The system can also receive confirmations of LG issuances and reduction information from SWIFT
- Connectivity costs are low due to sharing of the SWIFT channel with other treasury areas: payments, securities, FX, E&I, bank accounts, and additional trade finance messages (Import and Export Documentary Credits)
- Enables true straight-through processing of LG data from application to LG issuance, confirmation to reduction and closure of LG transactions
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