Securing a Standby Letter of Credit (SLOC) isn’t just about paperwork—it’s about confidence and strategy. At Financely, our process ensures clarity at every step, whether you’re looking to secure funding for a multi-million-dollar project or backing critical trade finance obligations. Ready to dive in? Let’s walk you through each step.
Step 1: Submission & Initial Review
Your journey starts with submitting the essentials. For project finance deals, we’ll need detailed feasibility studies, revenue models, and key contracts like EPC and PPA agreements. Trade finance? That means verified purchase orders, shipping terms, and supplier agreements. Looking at performance SLOCs? Submit contracts outlining your commitments and measurable milestones. For financial SLOCs, include audited financial statements, credit ratings, and collateral documentation. Missing a piece? No worries—we’ll work closely with you to fill any gaps and make sure everything is in place before we move to the next step.
Step 2: Comprehensive Underwriting Assessment
Now, we get into the details. For project finance, we’ll dig into SPV structures, cash flow models, and compliance requirements. Trade finance deals are checked for payment flows, creditworthiness of counterparties, and shipping timelines. Performance SLOCs are evaluated for enforceable guarantees and accountability measures, while financial SLOCs undergo a thorough review of collateral strength, liquidity, and credit health. This step ensures every aspect of your transaction is carefully analyzed to reduce risk and prepare for a seamless issuance process.
Step 3: Approval & SLOC Issuance
The final step is issuing your SLOC. For project finance, this means linking it to secured revenue streams and contracts like PPAs or tolling agreements. In trade finance, your SLOC guarantees payments for goods upon delivery. Performance SLOCs ensure that milestones are met, providing confidence to all parties involved. Financial SLOCs guarantee payments, improving your credit position and opening doors to better financing options. By the time we’re done, you’ll have a powerful financial instrument in hand, backed by trusted institutions.