Secure the LC, align the wording for discounting, and receive an advance at sight or against a deferred obligation. We coordinate banks, controls, and tested SWIFT flows so you can fund operations without waiting for reimbursement.

• LC issuance or confirmation through regulated banks with aligned wording and draw conditions
• Discounting facility for DLC, UPAS, and SBLC where assignment or compliant draw allows discounting
• Optional SPV purchaser for true sale and clean reporting to investors and auditors
• Controlled document custody, eUCP acceptance where allowed, and proceeds control to a pledged account

Stage	Detail
Structuring	We draft LC wording under UCP 600 or ISP98, align documents and timelines, and shortlist issuers or confirmers acceptable to discounting funders.
Approval	Banks complete KYC and credit. Discounting limits are set by funders with country and bank sublimits.
Execution	You present compliant documents. The funder advances against the LC at sight or against a deferred obligation. Retainage releases on reimbursement.

Facility	Letter of Credit Issuance and Discounting Facility. Financely acts as arranger via regulated institutions. Financely is not a lender.
Program Size	Up to USD 25,000,000 revolving. Minimum draw USD 250,000. Single obligor cap 20 percent. Country and bank sublimits apply.
Eligible Instruments	DLC under UCP 600, sight or usance up to 180 days. UPAS with deferred reimbursement obligation. SBLC under ISP98 where compliant draw or assignment permits discounting. eUCP 2.0 accepted where the LC allows. Currencies: USD, EUR, GBP.
Advance Rates	DLC sight up to 92 percent. DLC usance up to 90 percent. UPAS up to 93 percent against acceptable bank obligation. SBLC draws 85 to 90 percent when drawable without defenses. Retainage releases at reimbursement net of discount and fees.
Pricing	USD: CME Term SOFR plus 3.00 to 6.00 percent per annum. EUR: 3 month EURIBOR plus 3.00 to 6.00 percent per annum. GBP: SONIA plus 3.00 to 6.00 percent per annum. Day count actual over 360. Minimum charged days: sight 30 days, usance greater of 30 days or 5 days past maturity. Handling fee USD 250 per instrument. SWIFT and courier at cost.
Recourse	Full recourse until reimbursement in cleared funds. Non recourse considered for confirmed DLC and UPAS obligations from acceptable banks or where credit insurance is in place and documents are strictly compliant. SBLC discounting is usually with recourse unless confirmed and unconditional.
Security and Controls	Assignment of proceeds and drafts. Control of originals or eUCP data sets. Proceeds to a pledged collection account. No double assignment. Monthly monitoring of limits and eligibility.
Documentation	Issuance or confirmation documents, discounting agreement, assignment and notice to bank, account control agreement, fee letters, legal opinions where required, and insurance endorsements if used.
Conditions Precedent	KYC and AML, corporate approvals, sample LCs and draft pack, collection account opening and control, confirming bank where needed, insurance binders where used, sanctions clearance, all fees funded, no material adverse change.
Rules and Law	UCP 600 and eUCP 2.0 for DLC. ISP98 for SBLC. URC 522 where collections apply. Facility documents under English law with exclusive jurisdiction in England and Wales unless a funder requires New York law.

• Purpose: true sale of drafts and assigned proceeds with ring fenced risk
• Jurisdiction: England, Ireland, or Luxembourg preferred by funders
• Accounts: dedicated collection account under control agreement
• Documents: sale and servicing agreement, notice of assignment, performance undertakings, priority filings if required
• Governance: independent director service and company secretarial support where required

Step	Action
Engage	Sign mandate and fund retainer. Share KYC, financials, trade pipeline, and target banks.
Underwrite	Credit note, LC wording, and issuer or confirmer selection. Discounting term sheets received from funders.
Close	Execute facility and control documents. Present the first compliant draw. Receive the advance. Continue on a rolling basis.

• Retainer: USD 75,000 on engagement for structuring, underwriting, wording alignment, and distribution
• Success fee: 2.50 percent of funded amounts at first draw, applied to upsizes on the incremental commitment
• Third party costs: legal, KYC, confirming bank, custody, SWIFT, courier, insurance, and diligence reports at cost

What is Letter of Credit discounting?

A funder advances a percentage of the LC value against a compliant presentation or an accepted deferred obligation. The advance is repaid when the issuing or reimbursing bank pays.

Can UPAS LCs be discounted?

Yes. The funder pays at sight and is reimbursed at the deferred date by the issuing or confirming bank. Pricing reflects the deferral period and bank risk.

Can SBLCs be monetized or discounted?

Only where the SBLC text allows assignment of proceeds or discounting of a complying draw and the bank risk is acceptable. Many SBLC transactions are with recourse.

Is non recourse discounting available?

Yes for confirmed DLC and UPAS obligations from acceptable banks or where credit insurance is in place and documents are strictly compliant.

What documents are required?

LC or SBLC, compliant transport and commercial documents, accepted draft where applicable, assignment or proceeds notice, tested SWIFT acknowledgments, and funder forms. eUCP data sets are accepted where the LC allows.

What can make an LC ineligible for discounting?

Weak issuing banks, sanctions exposure, high risk jurisdictions, non compliant documents, unclear wording, and prior assignments of the same proceeds.

Request Indicative Terms

Share sample LC texts, target banks, pipeline, and KYC. We will revert with aligned issuance wording and discounting limits.

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