| Parameter |
Indicative Terms |
| Instrument |
Documentary Letter of Credit issued in support of an eligible import, export, commodity, vehicle, equipment, or goods-based trade transaction. |
| Applicable Rules |
UCP 600, where incorporated into the credit. ISP98 may apply only where the instrument is structured as a standby letter of credit rather than a documentary commercial credit. |
| Applicant |
Corporate buyer, importer, trader, distributor, project SPV, or operating company with a defined underlying trade transaction and acceptable KYC documentation. |
| Beneficiary |
Supplier, exporter, manufacturer, seller, commodity counterparty, or trade beneficiary requiring conditional bank-backed payment support. |
| Purpose |
To support payment security, shipment execution, supplier comfort, and document-based settlement under a qualifying international trade transaction. |
| LC Face Value |
- Indicative minimum: USD 100,000 or equivalent.
- Typical range: USD 250,000 to USD 10,000,000.
- Larger transactions reviewed case by case based on applicant profile, collateral, provider appetite, and transaction quality.
|
| Tenor |
- Sight LC, deferred payment LC, or usance LC depending on the trade cycle.
- Typical tenor: 30 to 180 days.
- Tenors up to 360 days may be considered for qualifying transactions.
|
| Financely Fees |
Financely advisory, structuring, review, and quote-routing fees are quoted case by case after reviewing the transaction size, document quality, counterparty profile, jurisdiction, collateral position, and required provider workstream. Applicants should request a quote
for transaction-specific terms. |
| Bank / Provider Charges |
Issuance fees, confirmation fees, advising fees, amendment fees, SWIFT charges, collateral charges, and other bank or provider costs may apply. These are typically flat or percentage-based service fees and are quoted separately by the relevant issuing bank, confirming bank, correspondent bank, or trade finance provider. |
| Interest Treatment |
Documentary Letters of Credit generally do not incur interest on their own because they operate as a conditional payment undertaking rather than a direct loan. Interest may apply if the applicant requires financing, if a funded import loan or trust receipt facility is attached, or if the credit includes deferred payment terms that create a financing component. |
| Issuing Bank / Provider |
To be confirmed after file review. Financely may route qualifying requests to suitable banks, non-bank trade finance providers, specialist LC providers, or correspondent banking channels based on transaction fit. |
| Security / Collateral |
- Cash margin, blocked deposit, eligible collateral, parent guarantee, corporate guarantee, or other security may be required.
- Collateral requirements depend on applicant strength, provider appetite, tenor, transaction type, and LC amount.
- No collateral structure is final until reviewed and approved by the relevant provider.
|
| Required Documents |
- Company registration documents and corporate KYC.
- Applicant financials or bank statements, where required.
- Proforma invoice, sales contract, purchase order, or trade agreement.
- Buyer, seller, goods, Incoterms, shipment route, and document presentation requirements.
- Collateral details, if applicable.
|
| Conditions Precedent |
- Completed KYC and compliance review.
- Verification of the underlying trade transaction.
- Provider approval of applicant, beneficiary, goods, route, and jurisdictions.
- Agreement on LC wording, document requirements, collateral, and bank/provider charges.
- Execution of final provider documents.
|
| Indicative Timeline |
- Initial review: typically 2 to 5 business days after complete RFQ submission.
- Quote routing and provider feedback: typically 5 to 15 business days, depending on file quality and provider appetite.
- Issuance timeline: subject to final approval, collateral completion, compliance clearance, and execution of provider documents.
|
| Exclusivity |
No exclusivity at RFQ stage. Limited exclusivity may apply only after mandate execution if Financely is actively structuring and routing the file to selected providers. |
| Status |
Indicative and non-binding. Final terms remain subject to due diligence, provider approval, compliance review, collateral review, and executed documentation. |