Standby Letter Of Credit (SBLC) Providers

Standby Letter of Credit | Corporate Clients

Purpose — secure a bank-issued Standby Letter of Credit (SLOC) that satisfies contractual obligations without draining cash reserves.

Financely assists when collateral is limited by arranging:

  • Asset-based loans (receivables, inventory, equipment, real assets)
  • Equity injections from institutional or family-office investors
  • Sponsor issuance through balance-sheet partners (subject to KYC)

Every SLOC is issued under ISP 98 or UCP 600 by a recognised bank; confirmation is available where beneficiary guidelines require it. The issuing bank is selected only after credit appetite and jurisdiction are evaluated.

Next step: complete the secure screening form. No fees are invoiced until a mandate letter is executed.

High-Intent Enquiries

If you hold a signed contract or purchase order and require an SLOC between USD 5 million and 100 million, our credit team can revert with an indicative structure within one business day.

Provide key deal parameters — value, beneficiary, expiry, and preferred wording. We will outline documentation requirements, timeline, and cost components promptly.

Preferred Ticket Size

USD 5 million – 100 million delivers optimum pricing and bank interest.

Regulatory Basis

Issued under ISP 98(ICC Pub. 590) or, where required, UCP 600(ICC Pub. 600).

Compliance Oversight

FINRA-licensed chaperone for securities transfers; AML/KYC aligned with Wolfsberg-ICC-BAFT standards.

Step-by-Step Process

  1. Screening & Fit Check. Client submits form outlining transaction, collateral, and deadlines. Indicative opinion issued within one business day.
  2. Mandate & Retainer. Parties sign mandate letter; retainer (USD 50 000 – 200 000) placed in escrow. Full KYC/AML and document checklist released.
  3. Credit Package Build. Financial statements, contract copies, and cash-flow models compiled. Third-party legal opinions and collateral valuations commissioned.
  4. Collateral or Sponsor Placement. Asset-based loan, equity raise, or sponsor line arranged to meet bank security requirements. Collateral invocation risk must be demonstrably low.
  5. Issuing-Bank Approval. Credit committee reviews package, negotiates wording under ISP 98 or UCP 600, and issues draft.
  6. Issuance. Upon acceptance of final wording and payment of success fee (1 – 3 % of face value), SWIFT MT760 (or guarantee) is transmitted. Confirmation arranged where necessary.
  7. Post-Issuance Monitoring. Financely monitors covenant compliance and renewal milestones; amendments processed under UCP 600 Article 10 if terms change.

Indicative Economics

Retainer USD 50 000 – 200 000
Funds legal, valuation, and credit-analysis costs; invoiced post-mandate.
Success Fee 1 – 3 % of face value
Delivery SWIFT MT760 or Bank Guarantee
Submit Transaction Details
Indicative structure within one business day
Frequently Asked Questions

What rule set governs the SLOC?

Most SLOCs reference ISP 98. UCP 600 is used where beneficiaries prefer a documentary-credit framework. The chosen rule set appears in the wording and defines presentation, draw, and amendment procedures.

What defines a bankable transaction?

Issuers look for tangible performance risk with low probability of draw. Examples include:

  • EPC projects with milestone payments and fixed-price contracts
  • Commodity shipments supported by back-to-back off-take agreements
  • Government or investment-grade counter-party performance guarantees

Transactions featuring speculative pricing exposure, untested counterparties, or regulatory uncertainty seldom pass credit scrutiny.

How is collateral adequacy measured?

Collateral must cover principal plus interest and potential charges upon invocation. Banks apply advance-rate haircuts (typically 50 – 80 % of net orderly liquidation value) to determine adequacy.

Can the issuing bank be nominated?

Clients may list preferred banks. Final selection depends on sector appetite, geographic licensing, and available exposure limits. All issuers are regulated and maintain established correspondent lines.

Is the retainer refundable?

The retainer is non-refundable. It covers irrevocable third-party costs such as legal opinions and collateral appraisals.

What if contract values change after issuance?

Amendments require written consent from issuer, confirmer (if any), and beneficiary, consistent with UCP 600 Article 10. Additional underwriting and fees may apply.

How is ongoing compliance managed?

Financely monitors key covenants and renewal milestones, conducts periodic sanctions screening, and assists with draw or amendment documentation if needed.

Disclaimer. Financely acts as arranger, not lender or issuer. All mandates are subject to KYC, AML, and credit approval by the issuing institution. Timelines and fees are indicative and may change if transaction parameters shift. This communication is not an offer of banking or securities services where prohibited.

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