BACK: Global Intermediary for SBLC, BG, LC, Sight LC, and Usance LC

Introduction

International trade is the backbone of the global economy. Every day, billions of dollars’ worth of commodities, manufactured goods, machinery, and services are exchanged between countries. Yet, despite the enormous opportunities, global trade carries risks. Buyers want to ensure they receive the goods they pay for. Sellers want assurance that payment will arrive on time. Banks and institutions want compliance with regulations and financial transparency.

The solution lies in financial instruments—structured commitments that guarantee performance, payment, and trust. This is where BACK, a global financial intermediary, plays a crucial role. We specialize in Standby Letters of Credit (SBLC), Bank Guarantees (BG), Letters of Credit (LC), Sight LCs, and Usance LCs, empowering businesses worldwide to trade securely.

At BACK, our mission is simple: to remove uncertainty from global trade and replace it with confidence, credibility, and growth opportunities.

The Importance of Financial Instruments in International Trade

Building Trust Between Global Partners

When an exporter in Germany ships machinery to Africa or when an importer in Bangladesh buys sugar from Brazil, there is always uncertainty. Will the buyer pay? Will the seller deliver as agreed? This lack of trust can prevent businesses from expanding globally.

Financial instruments resolve this gap. By involving banks and intermediaries, both parties gain security:

• Buyers are assured that payment is only released once goods are shipped as agreed.

• Sellers are guaranteed that their efforts will be compensated.

• Banks act as guarantors, ensuring compliance with the terms of trade.

Minimizing Risks

The main risks in international trade include:

• Payment Risk – Buyer may delay or default.

• Delivery Risk – Seller may fail to supply.

• Performance Risk – Services or projects may not be completed.

• Currency and Political Risk – Cross-border complications.

By working with BACK, businesses can mitigate risks through well-structured financial instruments designed to safeguard both sides of the trade.

BACK’s Core Financial Instruments

At BACK, we provide a comprehensive portfolio of financial instruments. Each has its own purpose and is tailored to different trade scenarios.

1. Standby Letter of Credit (SBLC)

An SBLC is a powerful financial safety net. It ensures that if a buyer or client fails to meet obligations, the bank guarantees payment to the beneficiary.

How It Works:

• Issued by a bank on behalf of the buyer.

• If the buyer defaults, the bank pays the seller.

Applications:

• Commodity transactions.

• Project finance.

• Leasing agreements.

• International contracts.

Benefits of SBLC via BACK:

• Secures exporters against default.

• Enhances buyer credibility in new markets.

• Builds trust in high-value transactions.

2. Bank Guarantee (BG)

A Bank Guarantee provides security in contracts where performance or financial obligations must be met.

How It Works:

• If the buyer fails to fulfill obligations, the bank compensates the seller.

Applications:

• Infrastructure projects.

• International tenders.

• Large procurement deals.

Benefits of BG via BACK:

• Helps companies qualify for projects.

• Strengthens financial reputation.

• Reduces risks in long-term contracts.

3. Letter of Credit (LC)

A Letter of Credit is the backbone of international trade. It ensures that sellers receive payment once documents are presented.

How It Works:

• Buyer’s bank issues an LC guaranteeing payment.

• Seller provides documents (invoice, bill of lading, inspection certificate).

• Once verified, payment is made.

Applications:

• Bulk commodities: sugar, wheat, rice, soybean oil, coal.

• Machinery and raw materials.

• General import-export trade.

Benefits of LC via BACK:

• Reduces risk of fraud or default.

• Smoothens import-export processes.

• Creates confidence for new business relationships.

4. Sight Letter of Credit (Sight LC)

A Sight LC ensures immediate payment once shipping documents are presented and verified.

Applications:

• Perishable goods like food and fruits.

• Fast-moving consumer products.

• Urgent trade transactions.

Benefits of Sight LC via BACK:

• Provides instant liquidity to exporters.

• Ensures trust between buyers and sellers.

• Reduces delays in cash flow.

5. Usance Letter of Credit (Usance LC)

A Usance LC allows deferred payment after an agreed period, typically 30, 60, 90, or 120 days.

Applications:

• Large-scale commodity imports.

• Machinery and equipment trade.

• Long-term projects.

Benefits of Usance LC via BACK:

• Buyers gain credit flexibility.

• Sellers remain protected by bank guarantees.

• Encourages bigger trade volumes.

Why Businesses Choose BACK

In a competitive industry, BACK stands out as a financial intermediary because of our credibility, network, and client-focused approach.

1. Strong Banking Network

We maintain relationships with leading global banks, ensuring reliable issuance of SBLCs, BGs, and LCs.

2. Tailored Financial Solutions

Every transaction is unique. BACK provides customized instruments designed to fit specific trade requirements.

3. Risk Mitigation

Our intermediary role helps minimize payment, delivery, and performance risks.

4. Speed and Efficiency

With streamlined processes, we ensure quick issuance of financial instruments.

5. Transparency and Compliance

At BACK, integrity is our priority. We guarantee compliance with international banking standards, giving clients confidence and clarity.

The BACK Process

Our step-by-step process ensures smooth handling of financial instruments:

1. Consultation – Understanding client needs and trade structure.

2. Structuring – Recommending the most suitable instrument.

3. Banking Engagement – Negotiating with partner banks.

4. Issuance – Finalizing terms and issuing the instrument.

5. Execution – Ensuring the instrument is properly applied.

6. Ongoing Support – Advisory and monitoring throughout the transaction.

Industries We Serve

Our services support diverse industries engaged in cross-border trade:

• Commodities: sugar, wheat, corn, rice, soybean oil, coal, jute.

• Energy: oil, natural gas, mining projects.

• Infrastructure: contractors and tenders requiring BG-backed security.

• Machinery & Manufacturing: industrial equipment and raw materials.

• Retail & FMCG: perishable goods and fast-moving consumer products.

BACK’s Global Reach

With operations spanning Asia, the Middle East, Africa, and Europe, BACK connects businesses with global financial services. Our knowledge of compliance and cross-border regulations positions us as a trusted intermediary worldwide.

Case Studies: How BACK Empowers Trade

Case Study 1: Importer in Bangladesh

A Bangladeshi importer required a Usance LC (90 days) to import 25,000 MT of sugar. BACK arranged the LC through its banking network. The buyer sold the sugar locally before making payment, benefiting from extended credit terms.

Case Study 2: Machinery Exporter in Germany

A German machinery exporter faced payment risk with a new African client. BACK arranged an SBLC, securing guaranteed payment. This allowed the exporter to ship goods with confidence and expand into Africa.

Case Study 3: Construction in the Middle East

A contractor bidding for an oil and gas project required a Bank Guarantee. BACK structured the BG, enabling the contractor to qualify and win the tender.

How BACK Adds Value Beyond Financial Instruments

Advisory Services

We provide guidance on the most effective instrument for each trade scenario.

Global Compliance

BACK ensures strict adherence to international trade regulations, reducing compliance risks.

Long-Term Partnerships

Our focus is not just on transactions but on building lasting client relationships.

BACK’s Commitment to Clients

We believe that trust, security, and speed are the pillars of international trade. That’s why we:

• Invest in technology for efficient processing.

• Train our experts to stay updated with banking regulations.

• Expand partnerships with global banks.

Our goal is to give businesses the confidence to trade without limits.

Conclusion

Global trade thrives when businesses can operate with trust and security. Financial instruments like SBLC, BG, LC, Sight LC, and Usance LC make this possible.

As a financial intermediary, BACK specializes in arranging these instruments, bridging the gap between buyers, sellers, and banks. With our global network, transparency, and expertise, we empower companies to expand into new markets confidently.

Whether you are an importer, exporter, contractor, or investor, BACK ensures your transactions are backed by credibility and reliability.

With BACK, you don’t just access financial instruments—you access global opportunities.