Structured Finance
We help clients monetize eligible SBLCs through discounting or collateral-backed funding. The instrument must be genuine, irrevocable, issued under ISP98, delivered by MT760, and free of prior liens or assignment. For background on transmission and bank format, see our MT760 SBLC guide.
What This Service Covers
Who It Fits
- Corporates or beneficiaries holding an issued SBLC and seeking liquidity
- Trade, project finance, leasing, and contract-backed transactions
- Clients who need real structure, bank verification, and settlement control
What We Do
- Review eligibility, issuer quality, tenor, and document stack
- Coordinate structure, assignment, proceeds control, and counterparty approach
- Manage closing checklist, conditions precedent, and settlement workflow
Indicative Terms
| Eligible instrument |
ISP98 SBLC, operative via MT760, genuine, irrevocable, and free of prior pledge or assignment |
| Minimum size |
USD 2,000,000 or currency equivalent |
| Tenor |
Up to 24 months, with preference for 12 months or less |
| Indicative advance rate |
Usually 50% to 80% of face value depending on issuer strength, confirmation, tenor, and structure |
| Retainer |
USD 32,500 to 105,000, non-refundable, depending on complexity |
| Success fee |
2.75% of gross funded amount, deducted at closing |
| Timing |
Typically 5 to 10 banking days from clean MT760 and satisfaction of conditions precedent |
How Monetization Is Usually Structured
Discounting
A funding counterparty advances a lump sum against the SBLC, usually with assignment and proceeds control in place. This is the cleaner route when the objective is immediate liquidity from one instrument.
Collateral-Backed Funding
The SBLC supports a structured facility rather than a single discounted payout. This can suit repeat draws, borrowing-base structures, or staged cash needs tied to contract performance.
Process
1. Review
We review the SBLC text, issuer, tenor, contract support, and KYC package.
2. Engagement
If viable, we issue indicative terms. Client signs and pays the retainer.
3. Structuring
We coordinate wording, controls, diligence, and counterparty approach.
4. Closing
Client delivers clean MT760, conditions precedent are met, and funds settle net of fees and agreed costs.
No double pledge. We do not proceed where the SBLC is already encumbered, assigned, pledged elsewhere, or used in parallel financing. Bank verification and no-encumbrance confirmation are required.
FAQ
Do you accept leased SBLCs?
No. We only consider genuine issued instruments tied to a legitimate commercial use case and subject to underwriting.
Does confirmation improve pricing or advance rate?
Yes. A stronger confirmer can improve the credit profile and may increase advance rate or tighten pricing, subject to the case.
How fast can this close?
Typical settlement is 5 to 10 banking days after clean MT760 and full satisfaction of conditions precedent. Complex files can take longer.
Is funding guaranteed?
No. Every file is subject to KYC, AML, sanctions screening, legal review, bank verification, counterparty appetite, and final approval.
Apply To Monetize Your SBLC
Send the SBLC draft, issuer details, tenor, contract summary, and KYC package. We will review the file and revert with indicative structure, pricing range, and next steps.