Close the LC, then turn it into working capital. We coordinate the issuer or confirmer, align the text with discounting criteria, and deliver a funded advance against compliant presentation.

• LC issuance or confirmation through regulated banks with aligned wording
• Discounting line arranged with banks or private credit funds for DLC, UPAS, and permitted SBLC draws
• Optional SPV purchaser for true sale and clean reporting
• Controlled document flow, tested SWIFT acknowledgments, and proceeds control

Stage	Detail
Issuance or Confirmation	We structure the LC text under UCP 600 or ISP98, align draw conditions, and secure an issuing or confirming bank acceptable to discounting counterparties.
Discounting Setup	We arrange a discounting facility sized to pipeline, banks, and jurisdictions. Proceeds are paid to a controlled account. Retainage releases on reimbursement.
Execution	You present compliant documents. The funder advances against the LC at sight or against an accepted deferred obligation. Settlement occurs when the bank reimburses.

Facility	Letter of Credit Issuance and Discounting Facility. Financely acts as arranger via regulated counterparties. Financely is not a lender.
Size	Up to USD 25,000,000 revolving. Single draw minimum USD 250,000. Single obligor cap 20 percent of program. Country and bank sublimits apply.
Eligible Instruments	DLC under UCP 600, sight or usance up to 180 days. UPAS LC with deferred reimbursement obligation. SBLC under ISP98 where assignment of proceeds or discounting of a complying presentation is permitted. eUCP 2.0 accepted where allowed. Currencies: USD, EUR, GBP.
Advance Rates	DLC sight up to 92 percent. DLC usance up to 90 percent. UPAS up to 93 percent against acceptable bank obligation. SBLC draws 85 to 90 percent when drawable without defenses. Retainage released at reimbursement net of discount and fees.
Pricing	USD: CME Term SOFR plus 3.00 to 6.00 percent per annum. EUR: 3 month EURIBOR plus 3.00 to 6.00 percent per annum. GBP: SONIA plus 3.00 to 6.00 percent per annum. Day count actual over 360. Minimum charged days: sight 30 days, usance greater of 30 days or 5 days past maturity. Handling fee USD 250 per instrument. SWIFT and courier at cost.
Recourse	Full recourse until reimbursement in cleared funds. Non recourse considered for confirmed DLC or UPAS obligations from acceptable banks, or where credit insurance is in place and documents are strictly compliant. SBLC discounting usually with recourse unless confirmed and unconditional.
Security and Controls	Assignment of proceeds and drafts. Control of originals or electronic data sets. Proceeds to a pledged collection account. No double assignment. Concentration and eligibility tests monitored monthly.
Documentation	LC issuance or confirmation documents. Discounting agreement. Assignment and notice to issuing or confirming bank. Account control agreement. Fee letters. Insurance endorsements if used. Legal opinions if required.
Conditions Precedent	KYC and AML. Corporate approvals. Sample LCs and draft document pack. Collection account opening and control. Confirming bank where required. Insurance binders where used. Sanctions clearance. All fees funded. No material adverse change.
Rules and Law	UCP 600 and eUCP 2.0 for DLC. ISP98 for SBLC. URC 522 where collections apply. Facility documents under English law with exclusive jurisdiction in England and Wales unless the funder requires New York law.

• Purpose: true sale of drafts and assigned proceeds, ring fenced risk, investor friendly reporting
• Jurisdiction: England, Ireland, or Luxembourg preferred by funders
• Accounts: dedicated collection account under control agreement
• Documents: sale and servicing agreement, notice of assignment, performance undertakings, priority filings if required
• Governance: independent director service as required

Step	Action
Engagement	Sign mandate with Financely and fund retainer. Provide KYC, financials, pipeline, and target banks.
Underwriting	Credit note prepared, LC wording aligned, issuer or confirmer shortlisted, discounting funders lined up.
Documentation	Execute issuance or confirmation docs, discounting agreement, assignment, account control, and fee letters. Set tested SWIFT flows.
Go Live	Present compliant documents. Receive advance. Retainage releases on reimbursement. Rolling usage within limits.

• Retainer: USD 75,000 on engagement for structuring, underwriting, LC wording alignment, and distribution
• Success fee: 2.50 percent of funded amounts at first draw, applied to upsizes on the incremental commitment
• Third party costs: legal, KYC, confirming bank, custody, SWIFT, courier, insurance, and due diligence reports at cost

Can you arrange issuance and discounting under one mandate?

Yes. The mandate covers LC issuance or confirmation and a linked discounting facility with the same documentation standards.

Do UPAS LCs qualify for discounting?

Yes. Funding is advanced at sight against the deferred reimbursement obligation of an acceptable bank. Interest covers the deferral period.

Can SBLCs be discounted?

Only where the SBLC permits assignment of proceeds or discounting of a complying presentation and where the bank risk is acceptable. Most SBLC discounting is with recourse.

Is non recourse available?

Yes for confirmed DLC and UPAS obligations from acceptable banks or where credit insurance is in place and documents are strictly compliant.

What is the minimum ticket size?

USD 250,000 per draw. Programs are sized from USD 5,000,000 to USD 25,000,000.

What kills eligibility?

Weak issuing banks, sanctioned or high risk countries, non compliant documents, double assignments, and unclear LC wording.

Request Indicative Terms

Share sample LC texts, target banks, pipeline, and KYC. We will revert with aligned issuance wording and discounting limits.

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