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Ossiano Capital — Trade Finance for Global Buyers, Sellers & Partners
FOR BUYERS
FOR SELLERS
FOR PARTNERS
HERITAGE
RESEARCH DESK
CAREERS
CONTACT
FOR BUYERS
FOR SELLERS
FOR PARTNERS
HERITAGE
RESEARCH DESK
CAREERS
CONTACT
Standby letters of credit and demand guarantees do the same job, differing mainly in rules and vocabulary
Payment methods Shrinivas G 1/10/26 Payment methods Shrinivas G 1/10/26

Standby letters of credit and demand guarantees do the same job, differing mainly in rules and vocabulary

A standby letter of credit and a demand guarantee both pay the beneficiary on a complying demand after a default. Standbys usually follow ISP98 and demand guarantees URDG 758; the main differences are terminology and practice.

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