Non-recourse letter of credit discounting is a liquidity solution that allows exporters to accelerate cash collection against a valid export letter of credit without retaining repayment liability if the issuing bank fails to pay, subject to the exact structure and conditions. For sellers with tight working capital cycles, this can unlock faster reinvestment into procurement, production, and shipment scaling.
This is not casual money. Non-recourse pricing and appetite depend first on issuing bank quality, country risk, document cleanliness, and the ability to present a compliant, dispute-resistant file. When any of those elements are weak, the market defaults to recourse terms or declines the request.
This structure is typically suited to exporters and trading companies with repeat shipment flows and credible counterparties.
In market terms, non-recourse usually means the discounting provider takes primary exposure to the issuing bank’s payment risk once documents are presented in compliance. It does not mean the exporter is insulated from document discrepancies, fraud, or misrepresentation. The structure still relies on strict documentary performance.
Strong issuing bank risk is the foundation of real non-recourse appetite.
Minor documentary slippage can convert a non-recourse story into a rejected claim.
Exporters often copy beneficiary-friendly wording that looks strong commercially but becomes unfinanceable. Typical friction points include:
Your headline title reference of LIBOR or SOFR plus a spread should be seen as an indicative market-style framing rather than a promise. Final pricing depends on the issuing bank, country, tenor, document risk, and transaction size. For many modern structures, SOFR-based references are more relevant given market transitions, but the spread still moves with risk.
A lender-ready pack increases speed and protects pricing.
Financely provides advisory and arrangement support for export LC discounting through regulated partners. We are not a bank. We do not provide direct funding from our own balance sheet. Our role is to clean up the structure before it meets a credit desk.
This includes reviewing LC wording for financeability, aligning document conditions with real operational capacity, strengthening the presentation pack, and targeting suitable capital providers based on issuing bank risk, country exposure, commodity or product type, and tenor.
If you want to discount a letter of credit without recourse and need a structured, compliant approach that fits professional credit expectations, Financely can review your LC, assess the realistic non-recourse pathway, and coordinate a controlled process through regulated partners.
Discuss an LC Discounting MandateDisclaimer: This page is for general information only and does not constitute legal, financial, or regulatory advice. Financely acts as advisor and arranger through regulated partners and is not a bank or direct lender. Financely does not guarantee discounting approvals or pricing. Any facility is subject to due diligence, legal documentation, KYC, AML, sanctions screening, issuing bank and country risk review, document compliance, and approvals by relevant institutions. Professional and corporate audience only.
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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.
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.
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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.
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, engagements 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 and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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