Documentary Letter of Credit (DLC):

A documentary letter of credit is issued by a bank on behalf of an importer, and provides a guarantee to an exporter that money due as payment for goods ordered by the importer will be paid. The documentary letter of credit contains terms and conditions that the exporter must meet, including the provision of documents, such as export licenses issued by the exporter's government.

Standby Letter of Credit (SBLC):

A guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SBLC will perform brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then send notification to the bank of the party requesting the letter of credit (typically a seller or creditor).

Bank Guarantee (BG):

A promise made by a bank to provide payment to another bank or lender on a bond, loan, or other liability in the event of default. Banks often make guarantees on behalf of certain clients to promise payment on loans. Bank guarantees reduce the risk to loans and liabilities and usually improve the credit agency rating of bonds.

Performance Bond Guarantee:

A bond issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract.

Proof of Funds (POF):

A proof of funds is a statement by a bank or financial institution that a depositor has a certain amount on deposit.