How to Raise Capital Using a Standby Letter of Credit (SBLC)
How to Raise Capital Using a Standby Letter of Credit (SBLC)
How to Raise Capital Using a Standby Letter of Credit (SBLC)
Can you raise capital using an SBLC? Yes—if the SBLC is genuine, backed by a real transaction, and issued under strict conditions. It can be used to unlock credit, secure project financing, or support a trade facility.
SBLCs are more than just a payment guarantee. In the right structure, they can be used to unlock capital, bridge procurement deals, or enhance creditworthiness. But the key is understanding when and how they work—and how not to fall for fake “monetization” schemes that go nowhere.
What Is an SBLC?
A Standby Letter of Credit (SBLC) is a guarantee issued by a bank or financial institution, confirming that payment will be made if the buyer fails to meet contractual obligations. It’s commonly used in project finance, trade, and performance-based transactions.
Using an SBLC to Raise Capital
Companies with access to a verifiable SBLC can use it to:
Secure a credit line from a private lender
Unlock a short-term facility to fund procurement or delivery
Support a back-to-back trade structure where the SBLC unlocks delivery from a supplier
Strengthen their position in negotiations by de-risking the counterparty
This Is Not Monetization—It’s Underwritten Credit
Let’s be clear. You can’t just “monetize” an SBLC through a platform and expect millions to drop into your account. That doesn’t happen. What does
happen is this:
You present a genuine SBLC issued under ISP98 or URDG 758
The lender or investor underwrites the transaction
They decide whether to extend a facility backed by the instrument
If accepted, capital is released—usually with strict terms, covenants, and controls
Deals We Structure with SBLC Support
Solar farm construction backed by PPA and SBLC as performance assurance
Import/export transactions where the SBLC supports supplier delivery
Project finance where the SBLC is used to unlock a bridge facility
Real estate projects requiring guarantees to activate drawdowns
What Kind of SBLC Works?
The SBLC must be:
Issued via SWIFT (MT760)
Compliant with ISP98 or URDG 758
Backed by a valid contract or deal—not speculation
Issued by a known bank or financial institution
How Financely Helps
We help clients raise capital using SBLCs the right way. Whether you’re the applicant or the beneficiary, we structure the file, coordinate issuance, and engage lenders or LPs to secure the facility. Everything is verified, underwritten, and fully compliant.
Need to Raise Capital With an SBLC?
We help structure, issue, and fund real SBLC-backed transactions through our network of private lenders, LPs, and issuing banks.
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Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address
the challenge of global transaction risk through structured strategies that foster cross-border
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Financely assists banks facing Basel III pressures by distributing trade finance deals and
providing collateral for letters of credit. We reduce capital burdens while preserving client
relationships and fostering service expansion. Submit your request to optimize your trade finance
offerings.
Once we receive your submission, our team will review your information to determine feasibility. If
eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ
and Procedure
pages for more information.
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.
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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.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
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.
Trade Finance
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
LCs and Confirmations
SBLC and Guarantees
AR/AP and Supply Chain
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.
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.
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