Connect with Letter of Credit Sponsors
Have a profitable transaction that requires a Letter of Credit, but lack the cash collateral to post the margin? Financely connects you with a network of capital sponsors ready to fund your margin requirements and get your deal moving.
Find a Letter of Credit SponsorWhat is a Letter of Credit Sponsor for Margin Posting?
A Letter of Credit Sponsor is a capital provider who posts the required cash collateral (margin) to a financial instrument provider on your behalf. This enables the issuance of a Letter of Credit that you couldn't otherwise access. In return, the sponsor shares in the transaction's profits, allowing you to execute your trade without tying up your own working capital.
Our Margin Posting & Sponsorship Process
We connect viable transactions with vetted capital, managing the process from due diligence to deal completion.
1. Submit Your Transaction
Provide the details of your underlying transaction, including the pro-forma invoice, buyer/seller info, and the required instrument details.
2. Transaction Due Diligence
We conduct a thorough review of the deal's viability, counterparty risk, and profitability to ensure it is structured to attract a sponsor.
3. Sponsor Matching
Your vetted transaction is presented to our network of private capital providers and Letter of Credit sponsors seeking to deploy funds into secure, high-yield trades.
4. Sponsorship Agreement
We facilitate the negotiation of a term sheet and sponsorship agreement that clearly outlines profit sharing, fees, and responsibilities.
5. Margin Posted & Instrument Issued
Upon execution of the agreement, the sponsor posts the required margin, allowing the Letter of Credit to be issued so you can complete your trade.
Benefits of Using a Letter of Credit Sponsor
Unlock Profitable Trades
Execute transactions that would otherwise be impossible due to a lack of cash collateral for margin requirements.
Preserve Your Working Capital
Keep your own capital free for other business operations instead of tying it up as a margin deposit for months.
Access Private Capital
Tap into a network of private capital specifically allocated for sponsoring trade finance and transaction-based margins.
All Major Instruments
We arrange sponsors for Standby Letters of Credit (SBLCs), Documentary Letters of Credit (DLCs), and Unconditional Payment Assurances (UPAs).
Clear Legal Frameworks
All deals are structured with clear, professionally drafted sponsorship agreements to protect both the principal and the sponsor.
Vetted Transactions & Sponsors
Our due diligence process ensures that only viable, well-structured transactions are presented to our network of trusted sponsors.
Fund Your Margin, Finalize Your Deal
Don't let a margin requirement be the barrier to your next successful trade. Connect with a Letter of Credit Sponsor through the Financely platform and get the capital backing you need.
