Selecting the right Standby Letter of Credit (SBLC) provider is crucial for safeguarding your business's financial interests. This decision should be based on your specific business requirements, the nature of your transactions, and your financial strength.
If your company has a high revenue turnover and a strong credit history with your bank, obtaining an SBLC from a local bank can be particularly advantageous.
Local banks that are familiar with your financial standing may offer more favorable terms, lower fees, and expedited processing times. They can also provide personalized service and a deeper understanding of your business needs, which can enhance the efficiency and effectiveness of the SBLC issuance.
We can also assist by issuing SBLCs on your behalf through JPMorgan Chase, Bank of America or China Construction Bank, offering flexible solutions tailored to your financial objectives.
When dealing with most banks, they will ask you to have 100% collateral to back up the Letter of Credit. This means you need to secure the credit with assets or cash equivalent to the value of the credit.
Be mindful that banks will also charge extra fees for using the Letter of Credit, usually between 2% & 6% annually, plus some initial issuing charges.
Knowing these costs is important to use SBLC effectively for your business needs.
In some rare situations, if you don’t have enough collateral, a bank might still issue an unsecured LC if they think the transaction is low risk.
In case the bank insists on collateral and you don’t have it, you will need to find a third party to provide it.
It’s crucial to understand these aspects to avoid any unforeseen complications in your business transactions.
We want to know your needs exactly so that we can provide the perfect solution. Let us know what you want and we’ll do our best to help.
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.
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.
