SBLC “Buyers” Are Scamming Themselves
SBLC “Buyers” Are Scamming Themselves
No regulated bank sells a standby letter of credit at a discount. The pitch survives because people pay fees before doing real underwriting. Let’s end the noise and stick to how standby paper is actually issued and used.
What SBLCs Actually Are
A standby letter of credit is a bank undertaking to pay on a complying demand if the applicant fails to perform or pay. Most standbys reference ISP98. Some trade cases use UCP 600. Issuance follows KYC, credit approval, and draft text that mirrors the underlying contract. It is not a voucher or a tradable commodity.
The Fraud Pattern
- “Tier 1 access” claim without a mandate or file.
- Offer to “buy” paper at 30–40% of face value.
- Upfront fees for escrow, monetization, or bullet trades.
- Silence after payment. New name. Same script.
Why Serious Players Ignore This
If discounted standbys were real, banks and large funds would clear the market in minutes. A standby is a specific bank promise tied to a named applicant and beneficiary with defined conditions. There is nothing to resell.
How Real SBLCs Get Issued
| Step | What Happens |
|---|---|
| Mandate | Engagement, data room, contract scope, beneficiary details. |
| Underwriting | KYC, credit file, limits, collateral if required. |
| Draft Text | Rule set on the face, expiry, place of presentation, objective demand. |
| Approval | Bank approvals and facility documents. |
| Issuance | SWIFT MT760, amendments via MT767, confirmation if needed. |
Quick Red Flags
- Talk of “leased SBLC monetization”. Banks do not lease standbys for cash out.
- “MT760 fee” quoted as a percentage. MT760 is a message type, not a risk fee.
- Missing rule set, expiry, or place of presentation in the draft.
- Pressure to wire “admin” fees before bank credit approval and signed docs.
Need A Real SBLC For A Real Transaction
Financely arranges underwritten, bank-issued standbys for trade and project contracts. Clean wording. Credible issuers. Executable timelines.
Start Your Standby Request With Financely
Share the contract, beneficiaries, face amount, and tenor. We will align wording and move to issuance with regulated banks.
Contact UsDisclosure. This article is informational. SBLC issuance is subject to bank underwriting, KYC, and documentation under ISP98 or UCP 600. Verify counterparties and seek professional advice before committing funds.
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