Standby Letter of Credit With No Upfront Fee
Reality check:
banks do not issue “free” SBLCs. You must post margin. If you cannot post enough, a third party can sometimes provide the margin as a separate credit facility.
That facility has underwriting, controls, and documented costs.
If you are deciding whether you can obtain an SBLC without paying anything upfront, start by separating two different ideas.
First, the arranger fee timing
can vary by provider and mandate terms.
Second, the bank risk cover(margin or equivalent) is not optional in real issuance pathways.
If you want to understand our process and eligibility standards before using the calculator, review our procedure
and FAQ.
If you already know your beneficiary requirements and you want an issuance path and pricing in writing, request terms through our Standby Letter of Credit
intake.
SBLC Margin Check
Answer a few short questions. We show the margin you likely must post. If you have a gap, we show the third-party raise you would need.
How a real Standby Letter of Credit provider works
We run two tracks in parallel. First, we solve the margin. If you do not have enough, we can sometimes structure a third-party margin line and hold it under control terms. Second, we align the issuing bank and the wording. If your beneficiary requires it, we coordinate confirmation through a regulated bank.
If you need a starting point for beneficiary wording, see our SBLC draft reference: Standby Letter of Credit Draft.
Rules and SWIFT
- ISP98
is common for standbys.
- UCP 600
is common when the beneficiary expects documentary credit style presentation. For an explainer, see our UCP 600 LC guide.
- URDG 758
is common for demand guarantees, depending on market practice.
SWIFT:
MT760 to issue. MT767 to amend. MT799 is not an SBLC. In real issuance, banks speak to banks.
What “no upfront fee” claims usually hide
Who charges what
| Item |
How it is set |
When |
| Arranger retainer |
Fixed fee for structuring, documentation and placement work |
At mandate |
| Arranger success fee |
Often linked to instrument size and complexity |
On issuance or confirmation |
| Third-party margin line |
Credit pricing depends on risk, controls, and tenor |
At margin close and through tenor |
| Issuing bank fee |
Annualised rate, pro-rated to tenor, subject to bank policy |
On issue |
| Confirming bank fee |
Annualised rate, priced to issuer risk and country risk |
On confirm |
Ready to move
Ask for a term sheet. We revert with scope, fees, and the bank path.
Request Term Sheet
Financely acts as arranger and advisor. We are not a bank. All matters require KYC, AML, and sanctions screening. Banks and funds set final terms.
This page is not a promise to issue an SBLC or to provide financing, and it is not legal, tax, or investment advice.
Where regulated activity is required, execution is coordinated through appropriately licensed counterparties.