We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
Financely · SBLC Procedure · Underwriting to Issuance · Regulated Banks
Financely's SBLC procedure runs on three parallel tracks: client underwriting, issuing bank introduction, and collateral or lender introduction where the applicant requires margin financing. All three tracks converge at MT760 issuance by the selected regulated bank. This page describes every step in that process in full, including what Financely does, what the issuing bank does, what the collateral provider does, which banks are in the network, and what the complete cost structure looks like. Nothing in this procedure is negotiated at the last minute, and no fees are charged before a term sheet is reviewed and accepted.
Every mandate begins with an underwriting assessment. Financely does not forward applications to banks. We underwrite the transaction first: assessing draw risk, structuring the collateral, selecting the issuer route, and reviewing the proposed SBLC wording against the beneficiary's requirements. Only once the mandate is underwritten and a term sheet is agreed does the file move to the bank.
The client submits the mandate package. At minimum this must include the underlying contract or letter of intent containing the SBLC requirement clause, the beneficiary's full legal name, bank, and any wording requirements, the requested SBLC face value, currency, tenor, and rule set (ISP98 or UCP 600), and a description of the applicant's available collateral. If no collateral is available, this should be stated clearly at submission.
Financely reviews the submission for commercial coherence: is there a genuine underlying obligation? Is the SBLC amount proportionate to the transaction? Does the beneficiary's institution have SWIFT connectivity to banks in our network? Is the applicant's jurisdiction and corporate structure compatible with regulated issuance? Initial assessment is returned within one to three business days.
What to submit:
Financely's underwriting team analyses the mandate in full. Draw risk assessment considers the probability and circumstances under which the SBLC may be called: the terms of the underlying contract, the applicant's operating capacity to perform, and the structural protections in the SBLC wording. This analysis informs the collateral structure and the bank's credit risk appetite for the transaction.
Wording review takes place in parallel. The beneficiary's required SBLC text is reviewed against ISP98 or UCP 600 compliance, internal consistency, and the precision of draw triggers. Ambiguous or overbroad draw language is flagged and renegotiated before the file reaches the bank. Poorly structured SBLC wording is the single most common cause of contested draws and rejected presentations.
The issuer route is selected on the basis of where collateral is held, the beneficiary's jurisdiction and minimum rating requirements, and the bank's current credit appetite for the applicant's sector and geography.
A term sheet is issued to the applicant setting out: the named issuing bank, the annual issuance fee, the collateral requirement (amount, type, and structure), the collateral provider fee if applicable, Financely's arranger fee, the documentation checklist, and the indicative timeline to MT760. All pricing is fixed in the term sheet. There are no undisclosed fees.
No fee of any kind is payable before the term sheet is reviewed and accepted by the applicant. Acceptance of the term sheet constitutes the applicant's instruction to proceed and triggers the documentation phase.
Financely does not submit mandates to banks as applications. We introduce structured mandates with complete documentation to the bank's trade finance desk at the appropriate level. The bank's credit process then proceeds on the basis of a fully prepared file, reducing review time and the back-and-forth that extends timelines for poorly prepared submissions.
Once the term sheet is accepted, the full KYC package is compiled. The bank's requirements are jurisdiction-specific but invariably cover the following categories. For the applicant entity: certificate of incorporation, memorandum and articles of association, register of directors, register of shareholders (to UBO level, typically 10–25% threshold depending on jurisdiction), certified copies of passports for all directors and UBOs, most recent two to three years of audited financial statements, bank reference letter, and the underlying transaction documentation that justifies the SBLC.
Sanctions screening is conducted against OFAC, EU consolidated list, UN sanctions list, UK HMT list, and all other applicable registries. Adverse media screening and PEP checks are run on all directors and UBOs. For applicants in higher-risk jurisdictions, enhanced due diligence applies and may require additional verification of source of funds and source of wealth.
The KYC package, once compiled, is submitted to the bank's compliance department for pre-screening before the credit file goes to the credit committee. Pre-screening rejection at KYC level terminates the mandate. Financely conducts its own preliminary KYC review before submitting to the bank, reducing the risk of compliance-stage termination.
The complete credit file is submitted to the bank's trade finance credit committee. The file contains: the credit application, transaction summary, KYC package, financial analysis (ratio analysis, debt capacity, liquidity assessment), collateral structure and security documentation, proposed SBLC text, draw risk commentary, and any additional bank-specific forms. Financely prepares the credit narrative and ensures the file answers the questions the credit committee will ask before they ask them.
Credit committee turnaround at tier-one banks for a straightforward SBLC mandate with adequate collateral is typically two to four weeks. Mandates involving first-time applicants, complex collateral structures, or higher-risk sectors or geographies may require additional information requests or take longer. Financely manages all communication with the bank throughout this process.
On approval, the bank issues its own facility letter or acceptance documentation confirming terms, fees, and conditions precedent to issuance.
Once conditions precedent are cleared (collateral deposited, security perfected, fees paid), the bank's trade finance legal team prepares the operative SBLC text. This is reviewed by Financely and, where required, by the applicant's own counsel. The final text is confirmed against the beneficiary's requirements and the term sheet.
The SBLC is then transmitted via SWIFT MT760 (authenticated interbank message) to the beneficiary's bank. The beneficiary's bank advises the instrument to the beneficiary. Where the beneficiary has requested confirmation, the confirming bank's undertaking is added at this stage. The instrument becomes operative on delivery.
Financely receives confirmation of MT760 dispatch and verifies the instrument has been received and advised by the beneficiary's bank before treating the mandate as closed to issuance.
Where an applicant does not have sufficient eligible collateral to meet the issuing bank's margin requirement, Financely introduces a specialist collateral provider. The provider posts the required margin at the issuing bank on the applicant's behalf, enabling the SBLC to be issued without the applicant blocking capital. This track runs in parallel with the bank introduction track and must be completed before the bank will transmit MT760.
During underwriting, Financely determines the gap between the applicant's eligible collateral and the bank's margin requirement. If a gap exists, the collateral structuring options are assessed: can existing receivables, securities, or inventory be structured as eligible collateral? If the gap cannot be closed from the applicant's own balance sheet, a third-party provider is required.
Financely matches the mandate to a suitable provider from its network based on the margin amount required, the tenor, the issuing bank's jurisdiction, and the provider's sector appetite and available capacity. Provider matching takes place during the underwriting phase and is reflected in the term sheet.
Financely formally introduces the applicant to the collateral provider. The provider conducts its own due diligence on the applicant and the underlying transaction. The provider's due diligence is independent of Financely's and the bank's: three separate assessments of the same transaction occur simultaneously.
The security package between the applicant and the provider is then negotiated. It typically covers: a personal or corporate guarantee from the applicant (or its principals), an indemnity for any loss arising from a draw on the SBLC, a fixed and floating charge over the applicant's assets where available, a deed of assignment over the underlying contract or its receivables, and a step-in right allowing the provider to perform the applicant's obligations if a draw is triggered. The security package is documented by specialist legal counsel and executed before the provider posts margin.
Once the security package is executed and the bank's credit approval is confirmed, the collateral provider posts the required margin at the issuing bank. This is typically a cash deposit into a blocked control account at the issuing bank, pledged in favour of the bank against the SBLC exposure. The issuing bank confirms receipt of the margin deposit. This confirmation clears the final condition precedent to MT760 issuance.
The applicant pays the provider's annual fee for the duration of the SBLC tenor. If the SBLC is drawn and the provider suffers a loss, the security package is enforced. If the SBLC expires without a draw, the margin is returned to the provider, the security package is released, and the mandate is closed.
Collateral providers in Financely's network are entities seeking risk-adjusted returns from short-tenor, documented, bank-secured positions. They are not lenders in the traditional credit sense: they do not lend money to the applicant. They post margin at a regulated bank against a security package from the applicant and earn an annual return. The position is bank-secured and self-liquidating at end of tenor.
Funds and family offices seeking non-correlated, asset-backed returns from short-tenor positions. Trade finance collateral provision fits within private credit mandates targeting 8–15% p.a. returns from self-liquidating, bank-secured assets. Position is documented, rated by the issuing bank's credit process, and transparent in its security structure.
Dedicated trade finance funds managing AUM across commodity finance, supply chain, and structured trade positions. SBLC collateral provision is a recognised sub-asset class within this universe: documented transaction, bank-level security, defined tenor, clean indemnity, and ISP98-governed instrument.
Ultra-high-net-worth individuals and principals with large liquid balance sheet positions seeking off-market, documented returns superior to money market rates. Direct relationship basis, structured around a full security package and independent legal review. Often co-invest alongside funds in larger mandates.
In specific jurisdictions and sectors (infrastructure, clean energy, agriculture in Sub-Saharan Africa, South Asia, and Latin America), development finance institutions including IFC, AfDB, FMO, and DEG provide concessional or blended collateral support. Applicable where the underlying transaction has a documented developmental purpose and ESG alignment.
Financely routes mandates to regulated issuing banks across the US, UK, EU, UAE, and Singapore. Bank selection is determined during underwriting on a transaction-specific basis: the primary considerations are where collateral is held or will be posted, the jurisdiction requirements of the beneficiary, the minimum credit rating required, and the bank's current sector and geographic appetite. Financely does not maintain a fixed panel. Every mandate is routed to the most appropriate institution for that specific transaction.
| Component | Who charges it | Typical range | When payable |
|---|---|---|---|
| Issuing bank annual fee
The bank's charge for carrying the SBLC as a contingent liability on its balance sheet and maintaining the regulatory capital requirement. |
Issuing bank | 1–3% p.a. of face value | Annually, in advance. First year payable on credit approval. |
| Financely arranger fee
One-time fee for underwriting, collateral structuring, issuer selection, documentation management, bank introduction, and mandate coordination through to MT760. |
Financely Group | Stated in term sheet · Sized to complexity, collateral structure, and face value | On term sheet acceptance. No fee before term sheet is reviewed. |
| Collateral provider annual return
The provider's fee for posting margin at the issuing bank on the applicant's behalf. Applies only where third-party collateral is required. |
Collateral provider | 3–8% p.a. of the margin amount posted | Annually, in advance. Payable to the provider under the security package agreement. |
| Legal and documentation costs
Counsel fees for security package documentation (applicant-provider), SBLC wording review, and facility documentation. Passed through at cost without markup. |
External legal counsel | USD 5,000–25,000 depending on complexity and jurisdiction | As incurred. Itemised in the documentation checklist. |
| KYC, SWIFT, and courier charges
Bank's administrative charges for KYC processing, SWIFT MT760 transmission, and physical document handling where required. |
Issuing bank | USD 500–2,500 depending on bank and transaction | At credit approval. Passed through at cost. |
Financely's engagement does not end at MT760. The SBLC is a live instrument for the duration of its tenor, and mandates require active management throughout.
Financely tracks the expiry date of every active mandate and provides advance notice to the applicant and, where required, the collateral provider. If the underlying transaction requires an extension, the renewal process is initiated in advance of expiry to prevent inadvertent lapse of the instrument during a live contract period.
Where the underlying transaction requires a change to the SBLC amount (step-down on milestone completion), a change to the beneficiary's wording, or an extension of the expiry date, Financely manages the amendment process with the issuing bank. Amendments require the bank's agreement and, for amount reductions, may permit partial release of collateral.
If the beneficiary presents a demand for payment under the SBLC, Financely provides draw support: reviewing the presentation for compliance with the instrument text, advising the applicant on their rights under the underlying contract, and coordinating with the issuing bank on timeline and documentary requirements. A compliant presentation under ISP98 must be paid by the issuing bank regardless of any dispute between applicant and beneficiary under the underlying contract. The independence principle of standby letters of credit is absolute.
For a straightforward mandate with adequate collateral and a complete documentation file submitted at intake, two to six weeks is typical. Mandates involving third-party collateral arrangement add two to four weeks for provider due diligence and security package execution. First-time applicants at a new bank, complex collateral structures, or higher-risk sectors and geographies may extend the timeline to eight to twelve weeks. The single biggest driver of delays is incomplete documentation at submission: every additional information request from the bank adds time. Submitting a complete, accurate file at the start is the most effective way to compress the timeline.
The issuing bank is named in the term sheet before any fees are paid. Bank selection is determined during underwriting and is driven by four factors: where the collateral is held or will be posted (the bank's credit appetite is highest for collateral in their own custody or an established jurisdiction); the beneficiary's minimum credit rating requirement and any jurisdiction-specific requirements; the bank's current sector and geographic appetite; and SWIFT connectivity to the beneficiary's bank. Financely does not route all mandates to a single preferred bank. Every transaction receives an issuer assessment, and the named bank in the term sheet is the bank that best serves the specific mandate.
If the applicant has no eligible collateral of their own (no cash margin, no pledgeable securities, no assignable receivables), Financely can arrange a third-party collateral provider who posts the full margin at the issuing bank on the applicant's behalf. The applicant pays the provider an annual fee and provides a security package covering an indemnity, guarantees, and a charge over available assets. Not all transactions qualify for third-party collateral: the underlying transaction must be genuine and commercially coherent, the applicant must pass KYC and sanctions screening, and the transaction must be acceptable to the provider's independent risk assessment. Transactions that lack a credible underlying commercial purpose will not attract a collateral provider. The provider is not in the business of underwriting fictitious transactions.
Financely's arranger fee is a one-time fee stated in the term sheet and payable on term sheet acceptance. No fee is charged before the term sheet is reviewed and accepted by the applicant. The term sheet also states the issuing bank's annual fee, the collateral provider's fee if applicable, and estimated legal and documentation costs. All costs are itemised. There are no hidden fees and no success fees charged after MT760 that are not disclosed in the term sheet. The complete cost structure is known to the applicant before they commit to proceeding.
Yes. Where the beneficiary requires a second bank's independent undertaking to pay (a confirmation), Financely arranges confirmation through a bank with the appropriate credit rating, jurisdiction, and appetite for the underlying transaction. The confirming bank adds its own irrevocable undertaking to the issuing bank's, giving the beneficiary recourse to two independent bank obligations. Confirmation is common in transactions where the issuing bank's country risk is unacceptable to the beneficiary, or where the beneficiary's own bank requires a locally regulated confirming institution. The confirming bank's fee is added to the cost structure and disclosed in the term sheet.
Provide the underlying contract, beneficiary details, SBLC amount and tenor, rule set, and your collateral position. Financely returns a term sheet with named issuing bank, pricing, and documentation checklist within one to three business days. No fees before the term sheet is reviewed.
Disclaimer: Financely Group acts as arranger and underwriter on a best-efforts basis. Financely is not a bank, lender, or issuing institution. All mandates are subject to KYC, AML, sanctions screening, and issuer credit approval. Financely follows the Wolfsberg-ICC-BAFT Trade Finance Principles. Financely does not arrange leased or rented SBLCs. All services are strictly business-to-business. Bank names listed are institutions whose accounts Financely's collateral provider network holds or through which Financely has routed mandates. Mention of a bank name does not imply any formal relationship, endorsement, or marketing agreement. Nothing on this page constitutes a regulated financial promotion.
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
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.
Submit a RequestAccess non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestSecure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFinancely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
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.
To proceed,
request a quote
and receive indicative commercial terms. If you require guidance before engaging,
book a paid telephone consultation.
Security notice: we are aware of third parties using Financely’s name without authorization. Only emails sent from our official domains and communications through our portal are valid. Please verify any outreach before sharing documents or sending payments, and read our impersonation warning.
Email supportdesk@financely-group.com for general enquiries, press & partnership requests.
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.
Click
here to download our brochure. Email
supportdesk@financely-group.com for general enquiries.
