Standby Letter of Credit With No Upfront Fee
Conclusion:
banks do not send free SBLCs. You must post margin. If you cannot post enough, we raise it from a third party. That raise has real checks and real costs. This is how real providers work.
SBLC Margin Check
Answer a few short questions. We will show the margin you must post. If you have a gap, we show the third party raise you need.
How a real Standby Letter of Credit provider works
We set two tracks at the same time. First, we fix the margin. If you do not have enough, we raise it from a third party and hold it in a safe account. Second, we line up the issuing bank and the wording. If the buyer asks, we add a confirming bank.
Rules and SWIFT
- ISP98
is common for standbys.
- UCP 600
if the standby needs documents on demand.
- URDG 758
for demand guarantees.
SWIFT:
MT760 to issue. MT767 to amend. MT799 for pre advice. Banks talk to banks.
Who charges what
| Item |
How it is set |
When |
| Arranger retainer |
Fixed fee for work |
At mandate |
| Arranger success fee |
Percent of face |
On issue or confirm |
| Private credit margin line |
Coupon plus a close fee |
At margin close |
| Issuing bank fee |
Rate per year, pro rated |
On issue |
| Confirming bank fee |
Rate per year |
On confirm |
Steps and time
| Day |
Step |
What happens |
| 1 |
Mandate and intake |
KYC, use, draft words, party list |
| 3 to 7 |
Margin term sheet |
Soft clear with the fund and trustee |
| 8 to 14 |
Bank route and wording |
Pick ISP98 or UCP 600 or URDG 758 and set fees |
| 15 to 28 |
Docs and approvals |
Security, account control, bank credit |
| 29 to 35 |
Fund the margin |
Private debt wires in |
| 36 to 45 |
Issue and confirm |
MT760 goes out and is checked |
Ready to move
Ask for a term sheet. We will reply with scope, fees, and the bank path.
Request Term Sheet
We act as arranger and advisor. We are not a bank. All deals need KYC, AML, and sanctions checks. Banks and funds set final terms. This page is not a promise to lend or a quote. Any securities work is done with a licensed chaperone where needed.