Revolving Letter of Credit Facilities for Solar Projects in the USA
Solar developers face significant upfront costs—equipment procurement, EPC contracts and interconnection fees. A revolving letter of credit facility lets you secure collateral and performance guarantees without tying up equity or senior debt. Financely specializes in designing these facilities, underwriting your project for bankability and placing the credit lines with our network of on-shore and offshore banks.
Why Solar Projects Need a Revolving LC
- Flexible Liquidity:
Draw and repay against equipment purchase contracts or performance bonds as milestones hit.
- Off-Balance-Sheet Support:
Preserve your senior debt capacity and working-capital lines while meeting supplier and offtaker requirements.
- Improved EPC Terms:
Backstop contractor obligations, unlocking better pricing and tighter delivery schedules.
- Regulatory Compliance:
Satisfy interconnection and PPA security requirements with bank-issued guarantees.
How We Structure Your Facility
Our team begins by mapping your project’s cash-flow profile—equipment draws, commissioning tranches and O&M reserves. We then define a borrowing base, set advance rates against approved collateral (e.g., solar modules, inverters, PPA receivables) and craft LC terms that match your timeline and covenants.
Underwriting for Bankability
Underwriting is more than a credit memo. We conduct technical due diligence on EPC contracts, verify supplier creditworthiness, model your PPA cash flows under stress scenarios and assemble the legal documentation. Banks only underwrite fully vetted transactions; our process ensures your facility clears internal risk committees swiftly.
Distribution to Our Bank Network
Once the package is complete, we tap our panel of correspondent banks—regional U.S. lenders, export-credit agencies and specialist trade-finance banks. We negotiate pricing, collateral structures and confirmation arrangements to ensure you receive competitive terms and a streamlined issuance process.
Ready to secure a revolving LC facility for your solar project? Submit your deal and we’ll deliver a tailored structure and quote—typically within two business days.
Submit Your Deal