SBLC Leasing & Monetization Term Sheet

SBLC Leasing And Monetization Term Sheet

SBLC Leasing And Monetization Term Sheet

The Standby Letter of Credit is not cash. It serves as credit enhancement support. Monetization is only achieved when a separate asset-based lending facility advances against receivables, contracts, and pledged assets. This structure clarifies the process, prevents double pledges, and ensures the SBLC strengthens the collateral base rather than replacing it.

Two Stage Structure

Stage One — SBLC Facility
The SBLC is issued by a regulated bank under ISP98 or UCP 600. It supports specific contracts and obligations. It is credit enhancement only and must be fully backed by a reimbursement agreement, cash margin, and pledged contracts.
Stage Two — Monetization Facility
Monetization comes from an asset-based lending facility that advances against receivables, inventory, and pledged contracts. The SBLC improves the advance rate but does not create liquidity on its own.

How The Monetization Process Works

1

SBLC Issuance

A regulated bank issues an SBLC under ISP98 or UCP 600. It is linked to named contracts. The borrower signs a reimbursement agreement, posts a cash margin, and pledges receivables and contracts. The SBLC is now valid credit enhancement but is not monetized directly.

2

Collateral Assignment

Contracts, receivables, and inventory are scheduled, assigned, and perfected. Assignment notices are sent to buyers. Collections are directed into a controlled account. A negative pledge confirms no other use of the same assets.

3

Monetization Through ABL

An asset-based lending facility advances against the pledged assets. Advance rates are sixty to eighty percent on receivables and forty to sixty percent on inventory. The SBLC improves confidence and allows higher borrowing but does not replace collateral.

4

Double Pledge Protections

All pledges are perfected by public filings. Receivables are assigned with notice. Collections are routed through a single blocked account. An intercreditor agreement defines rights between the issuing bank and the monetization lender. Borrower certificates confirm no duplicate pledges each month.

Pricing Structure

SBLC Costs
Issuance fee from zero point seventy five percent to two point twenty five percent per year. Cash margin as required by the bank. SWIFT and legal charges billed at cost.
Monetization Facility Costs
Arrangement fee from one percent to two percent of the commitment. Interest margin between four hundred and seven hundred basis points over the Secured Overnight Financing Rate or fixed rate from private lenders. Collateral control and audits billed at cost.

Compliance And Restrictions

  • The SBLC must be issued by a regulated bank with a verifiable SWIFT address.
  • Unregulated providers and so called leased instruments are not accepted.
  • Upfront payments are limited to documented bank fees and agreed retainers.
  • Full due diligence, know your customer checks, anti money laundering, and sanctions screening are required.

Request An SBLC Leasing And Monetization Proposal

Provide the draft SBLC, the list of contracts, receivable aging, and inventory controls. We will respond with lender routes, advance rates, reserves, and documentation requirements.

Start Your Monetization Mandate

This term sheet is indicative and non binding. The Standby Letter of Credit is credit enhancement support only. Monetization requires a separate asset based lending facility against receivables, contracts, and pledged assets. The SBLC alone cannot be monetized. Financely acts as an arranger and underwriter, not as a direct issuer or lender. All facilities are subject to due diligence, credit approval, and legal documentation.

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.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

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.

Trade Finance

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 Request

Project Finance

Access 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 Request

Acquisitions

Secure 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 Request

For Banks

Financely 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 Request

Once 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.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.