WE POST COLLATERAL
Financely holds deposits with various U.S. banks to issue Letters of Credit (LCs) for small utility companies needing to meet ERCOT and Public Utility Commission of Texas's financial security requirements.
Our guarantee fund allows companies to issue standby letters of credit without tying up 100% cash reserve, providing them with the flexibility to maintain operational efficiency and growth.
Standby Letters of Credit are issued within 5 to 10 business days for routine transactions.
Apply for a quote provide all the necessary information about your standby letter of credit (SLOC) needs.
Once we receive your application, we grant you access to our client portal where you can track the progress of your application.
We underwrite your deal and post up to 80% of the required collateral. You will need to post the remaining 20% into a Special Purpose Entity (SPE) account.
The letter of credit is issued to ERCOT, PUCT, or another state beneficiary on your company's behalf through one of the banks holding our deposits.
To start, please request a quote by providing all necessary information about your standby letter of credit (SLOC) needs.
The maximum amount for a Letter of Credit can be up to $3,000,000 USD.
We have accounts at Chase, Credit Suisse, HSBC, and China Construction Bank, which issue the Letters of Credit.
You need to provide 20% of the LC amount as collateral. We will post the remaining 80%. The annual fee is usually 10% on your 20% collateral deposit, which amounts to only 2% of the gross LC amount. This is much lower compared to the 6-10% you would typically pay to a bank.
The information provided on this page is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any financial products or services. Financely’s Guarantee Facility for issuing Letters of Credit (LCs) to meet ERCOT and PUCT compliance requirements involves financial and operational considerations. Prospective clients should carefully evaluate these factors and consult with their own legal, tax, accounting, and financial advisors before utilizing our services.
ERCOT and PUCT regulations require market participants to provide financial security to ensure compliance and operational stability. Financely has raised capital and deposited it with various U.S. banks, including Chase, Credit Suisse, HSBC, and China Construction Bank, to facilitate the issuance of these LCs. The issuance of Letters of Credit is contingent upon approval by these banks. In the event that a bank refuses to issue a Letter of Credit, Financely will refund the client’s deposit in full.
Clients are responsible for ensuring they meet all ERCOT and PUCT regulatory requirements and should not rely solely on the information provided herein. All fees, collateral requirements, and terms mentioned on this page are subject to change at Financely’s discretion. The actual terms and conditions will be outlined in the formal agreements provided upon application approval.
By accessing or using the information on this page, you acknowledge that you have read, understood, and agree to be bound by this disclaimer.
For more detailed information on ERCOT’s financial security requirements and compliance guidelines, please refer to ERCOT’s Credit Application and Financial Security Documents. Additionally, it is advisable to stay updated with the Public Utility Commission of Texas (PUCT) regulations which can be reviewed here.
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.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
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.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate 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.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagement may be carried out through Financely Group LLC, a non-deposit-taking non-banking financial company; Ashford Capital Advisory LLC; or another related entity. Financely and its affiliates are not registered as securities broker-dealers. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as an
exempt foreign private adviser pursuant to the Dodd-Frank Act, subject to applicable exemptions from certain regulatory requirements. Our services and regulatory status may vary based on the location and nature of the transaction. Click
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