In trade finance, “monetize” usually means discount the proceeds of a Letter of Credit before its stated payment date. The bank purchases the right to receive payment under the LC and advances funds to the beneficiary, less interest and fees. For standbys, funding may be possible when the SBLC is confirmed and drafted for clean documentary demand.
Pays at sight once documents are compliant. Banks may negotiate or discount immediately after examination, especially if the LC is available by negotiation with a named bank or is confirmed.
Pays on maturity after acceptance. Discounting converts the future payment into cash today. UPAS structures allow buyer to pay later while seller is paid at sight.
Primary use is as a default backstop. Funding against an SBLC is case-by-case and easier when confirmed and drafted for clean demand with clear timelines.
Opens the LC on the buyer’s request. Commits to pay when terms are met.
Advises the LC, examines documents, and may negotiate or discount.
Adds its own irrevocable undertaking to pay. Enables clean without-recourse discounting.
Ships goods or performs services, presents documents, and receives discounted proceeds.
Total cost depends on tenor, issuer and confirmer names, country risk, and document quality. Discounting applies an annualized rate to the period between discount date and maturity, plus bank fees for advising, examination, confirmation, and reimbursement. For sight LCs, the discount period is short or nil. For usance LCs, the period is the remaining days to maturity.
Documents pass. Confirming bank pays at sight without recourse. Beneficiary receives funds immediately, minus small fees.
Issuing bank accepts. Nominated bank discounts at an agreed rate. Beneficiary receives day-2 cash, bank is repaid at maturity.
Seller is paid at sight by the bank. Buyer repays at tenor to the bank. Pricing split between buyer and seller per contract.
No. Banks discount LCs with clean documents, clear payment undertakings, and acceptable issuer or confirmer risk. Some markets restrict discounting without confirmation.
If the confirming or issuing bank’s undertaking is unconditional and documents are compliant, banks often discount without recourse. If reliance remains on the beneficiary, terms may be with recourse.
Commercial LCs under UCP600 are standard for discounting. Standbys under ISP98 can support funding if drafted for clean demand. Clear rules reduce disputes and speed payout.
Share the full LC text, issuer bank, amount, tenor, and your draft documents. We will confirm eligibility and pricing bands.
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Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
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Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagement may be carried out through Financely Group LLC, a non-deposit-taking non-banking financial company; Ashford Capital Advisory LLC; or another related entity. Financely and its affiliates are not registered as securities broker-dealers. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as an
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