No Upfront Fee SBLC Provider
Why You Can’t Get an SBLC with No Upfront Fee
It’s a myth that you can secure a standby letter of credit (SBLC) without collateral or fees. Anyone touting “free” SBLCs is likely harvesting personal data—passport copies, IDs, phone numbers—under the guise of bogus programs, just like those fake Private Placement Program schemes on LinkedIn and Facebook.
Here’s how genuine SBLC issuance works: the issuing bank must protect its capital. If you lack sufficient assets, you or a sponsor must raise debt or equity to back the SBLC. That entails financial structuring, legal documentation, credit rating (for large deals), collateral pledges, trustees—each step adding time and cost.
Securing an SBLC: The Real Process
- Due Diligence & Underwriting: Assess applicant’s credit, cash flows and deal economics.
- Document Prep: Legal counsel drafts offering documents and term sheets.
- Credit Rating: For transactions above USD 50 million, investor committees often require formal ratings.
- Collateral Structuring: Pledge cash, receivables or hard assets via trustees and appraisers.
- Bank Approval & Issuance: Fees paid, collateral posted—bank issues SBLC via SWIFT MT760 or guarantee.
Why “No Upfront Fees” Requests Are Nonsense
- Underwriting costs: Banks, lawyers and underwriters need compensation for risk analysis.
- Mandatory collateral: No security means 100% credit risk on the bank’s books—unacceptable.
- Opportunity cost: Capital tied up in an SBLC could earn 5–8% in bonds or 15%+ in private equity.
The Myth of the “Discounted SLOC”
Scammers promise SBLCs at 30% of face value, monetized instantly. If that were real, it’d be free money. In truth, without underwriting contributions, no bank will take that risk—any promise otherwise is a scam.
Why 1–5 % Upfront Is Non-Negotiable
- Filters serious clients: Only committed sponsors see proposals.
- Compensates experts: Legal, appraisal and credit teams must be paid.
- Prices risk: Upfront fees cover banks’ capital allocation.
Objective: Secure a bank-issued SBLC while preserving liquidity. Financely arranges:
- Asset-backed loans (receivables, inventory, hard assets)
- Equity injections from institutional investors
- Third-party issuance via vetted sponsors
All SBLCs are issued by regulated banks. Final issuer is selected during structuring.
Next step: Complete our screening form. A $500 onboarding fee applies upon submission. No mandate or retainer until mutual interest is confirmed.
Pricing Summary
| Item | Range / Description |
|---|---|
| Retainer | $50 000–$200 000 (post-mandate) |
| Success Fee | 1–3% of face amount |
| Delivery | SWIFT MT760 or Bank Guarantee |
Timeline: 4–12 weeks from onboarding to issuance.
Submit TransactionFrequently Asked Questions
Q: Can I avoid paying origination fees?
A: No. All legitimate SBLCs incur underwriting, legal and collateral-structuring costs. Origination fees cover those expenses.
Q: How long does the SBLC process take?
A: Typically 4–12 weeks, depending on deal size, jurisdiction and collateral complexity.
Q: What if I can’t post collateral immediately?
A: You’ll need a sponsor to provide or finance the required assets. Without collateral, banks will not issue an SBLC.
Q: Are any fees refundable?
A: No. Retainers cover work already performed—legal opinions, valuations and credit analysis—which cannot be undone.
Q: How can I spot SBLC scams?
A: Beware of no-fee or “discounted” SBLC offers, unsolicited messages on social media, and requests for personal data without a clear mandate process.
Disclaimer: Financely Group is an arranger and advisor only. All mandates are subject to KYC, AML, and credit approval by third-party banks. Fees and timelines are indicative and may vary with transaction complexity and jurisdiction.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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 growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
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.
Submit a RequestOnce 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.
