what is a standby letter of credit sloc 
a standby letter of credit sloc is a legal document that guarantees a bank s commitment of payment to a seller in the event that the buyer or the bank s client defaults on the agreement a standby letter of credit helps facilitate international trade between companies that don t know each other and have different laws and regulations although the buyer is certain to receive the goods and the seller is certain to receive payment a sloc doesn t guarantee the buyer will be happy with the goods a standby letter of credit can also be abbreviated sblc 1investopedia laura porter