SBLC Issuance Without Full Cash Margin
SBLC Issuance When Margin Is Tight
- * Importers and traders with firm offtake and thin cash margins
- * EPC and supply contractors that need advance or performance support
- * Corporates with seasonal working capital gaps
- * Contract requires SBLC, ISP98 preferred, MT760 delivery
- * Collateral available beyond pure cash, for example receivables, offtake, inventory, deposits, or guarantees
- * Issuance must come from a top global bank, with or without confirmation
- * Underwriting, SPV formation, bank account opening, and liquidity raise
- * SBLC issuance via a top 25 global bank, MT760 sent as operative message
- * Optional advising or confirmation by an A rated bank when required
SBLC types we arrange
| SBLC Type | Use case | Rules | Typical tenor |
|---|---|---|---|
| Commercial SBLC | Trade shipments, call-off supply, revolving deliveries | ISP98 or UCP 600 where required | 3 to 12 months, extendable |
| Performance SBLC | Project performance, warranty periods, O&M obligations | ISP98 | 6 to 36 months |
| Advance Payment SBLC | Secures buyer advance until delivery or commissioning | ISP98 | Up to delivery or milestone plan |
| Tender SBLC | Bid security in public or private tenders | ISP98 or URDG 758 wording as requested | Bid period plus buffer |
| Financial SBLC | Loan or lease support where beneficiary accepts SBLC | ISP98 | As negotiated with beneficiary |
How the structure works
We map the contract, cash flows, and collateral you can post. We set the SBLC amount, tenor, reduction plan, and any confirmation. Term sheet shows required support and pricing with a closing timetable.
We form an SPV where needed, open accounts, and document security. Cash margin is minimized through pledged deposits, receivables, inventory, guarantees, or escrow controls agreed with the issuer.
We raise the remaining liquidity against the structure, complete KYC, and lock wording. Pre-advice MT799 is sent if required by the beneficiary bank.
Issuing bank releases the SBLC by MT760. We track advising, confirmation if applicable, any amendments, and reduction or cancellation at expiry.
Collateral and control options
- * Partial cash margin or pledged term deposit
- * Receivables or offtake assignment with collection accounts
- * Inventory under control agreements or warehouse receipts
- * Parent or sponsor guarantee for a portion of exposure
- * Escrow or account control with automated sweeps
- * Political risk or performance cover where relevant
- * Issuance through top 25 global banks subject to approval
- * Optional confirmation by an A rated bank when the beneficiary demands it
- * ISP98 wording mirrored line by line
Pricing and timelines
Time based SBLC commission plus arrangement fee sized to collateral quality and tenor. Legal, KYC, and courier costs are pass through.
Cash margin can be reduced with strong collateral and controls. Final advance rate depends on counterparty, structure, and issuer feedback.
Term sheet and underwriting, SPV and account opening, documentation and KYC, then MT760 issuance. Timelines are set at mandate stage and tracked to the day.
SBLC issuance FAQ
There is always support. We minimize cash by combining pledged deposits with receivables, inventory, guarantees, and account controls that issuers accept.
Which banks issueIssuance is arranged through top global banks subject to credit and compliance. Names are provided at mandate and may include confirmation options.
Is this a leased SBLCNo. Issuance is genuine, MT760 is operative, and the instrument is tied to a real contract or financing purpose.
What rules applySBLCs issue under ISP98 unless the beneficiary requests UCP 600. Wording mirrors annex requirements.
Yes when required. MT799 pre-advice can be sent once approvals, security, and fees are in place and the issue window is set.
Can the SBLC be confirmedYes if the beneficiary requires it. We arrange advising and confirmation with an A rated bank where available.
Minimum and maximum sizesTypical tickets start at USD 1 million. Upper limits depend on structure and issuer capacity for the transaction.
What happens at expiryReduction or cancellation follows the contract or milestone plan. If an extension is needed, we agree amendments in advance.
Refund guarantee
If we accept your mandate and fail to deliver an issuer-approved draft SBLC text and a compliance-cleared issuance approval within the agreed timetable, we refund our arranger fee. Third party costs such as legal, KYC, courier, and government charges are excluded. Refund terms are stated in the mandate letter.
Request SBLC terms without tying up full cash
Send the contract summary, required SBLC amount and tenor, beneficiary bank details, and what collateral you can post. We reply with structure options, pricing, and a closing checklist.
Request SBLC IssuanceWe act as an arranger on a best efforts basis through regulated partners. Eligibility depends on KYC and AML, sanctions screening, technical and legal diligence, and approval by issuing banks. Nothing here is a commitment to issue.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
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.
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