An SBLC is not a product you “order.” It is a bank undertaking issued after underwriting, compliance clearance, and collateral or credit support is in place. Most failed applications die for one reason: the applicant has a live deal, but not enough eligible margin to satisfy the bank.
Financely arranges SBLC issuance for live commercial deals and runs two workstreams in parallel: (1) the bank issuance and text path, and (2) the collateral gap solution if margin is tight. If you do not have enough cash collateral, we can bring lenders and LPs to bridge the shortfall into a controlled structure with proper security and documentation. This is a paid, underwritten process. Free SBLCs do not exist.
A Standby Letter of Credit is a contingent bank undertaking to pay a beneficiary on a compliant demand. It supports a defined obligation, usually payment or performance, with stated draw conditions, expiry, and place of presentation. The bank’s promise is only issued after approvals, security, and legal documentation are complete.
The ruleset is not decoration. It affects how documents are presented, how a demand is evaluated, and how disputes get interpreted.
Authentication is bank-to-bank. Screenshots and forwarded PDFs are not verification.
| Step | What Happens | What You Provide |
|---|---|---|
| 1) Define The Requirement | Face value, currency, tenor, expiry, beneficiary jurisdiction, and delivery method are aligned to the underlying contract. | Contract or term sheet, beneficiary details, and any acceptability checklist. |
| 2) Build The File | We assemble a bankable submission: purpose, risk, repayment logic, and the wording pathway. | Corporate documents, financials, ownership, and supporting transaction narrative. |
| 3) Compliance Clearance | KYC, AML, and sanctions screening for applicant, UBOs, and relevant counterparties. | KYC pack, IDs, corporate registry, UBO declarations, and source of funds narrative. |
| 4) Credit And Margin | The issuing bank determines acceptable security and required margin. If margin is short, the collateral gap solution is structured. | Collateral map: cash, securities, or assets available now and what must be bridged. |
| 5) Text Approval | Legal review confirms draw mechanics, expiry, place of presentation, and ruleset fit. | Beneficiary wording or counsel comments and final contract alignment. |
| 6) Issuance And Verification | MT760 is issued and advised. Confirmation is added if required by the beneficiary. | Advising bank coordinates authentication and delivery confirmations. |
| Document | Why It Matters | Frequent Mistake |
|---|---|---|
| Financial Statements | Credit view, liquidity, and limits testing. | Out-of-date statements or incomplete reporting footprint. |
| Underlying Contract | Defines purpose, triggers, governing law, and beneficiary conditions. | Vague obligations, missing triggers, or mismatched delivery terms. |
| KYC Pack | Mandatory for onboarding and approvals. | UBO gaps, unclear source of funds, inconsistent documents. |
| Draft SBLC Text | Aligns ruleset, expiry, draw conditions, and presentation place. | Wrong ruleset, missing presentation clause, impossible wording requests. |
| Collateral Schedule | Determines feasibility and speed to issuance. | No control path, no trustee or security agent plan, unrealistic margin assumptions. |
If you cannot post the margin the bank requires, issuance does not move. That is not a “bank problem.” It is a structure problem. This is where Financely adds leverage: we structure a collateral gap solution and bring lenders and LPs into a controlled framework so the bank can issue against acceptable security.
Simple decision rule:
'If your beneficiary wants an SBLC, the file must answer two questions without drama: why the instrument is required, and how the bank is protected. If margin is tight, the collateral bridge is the first workstream, not the last.'
Costs are not a single number because the economics are split across structuring, bank issuance, and any collateral bridging. The ranges below are indicative and move with amount, tenor, jurisdiction, and applicant strength.
| Workstream | Indicative Basis | Typical Timing | Notes |
|---|---|---|---|
| Arranger Retainer (Financely) | USD 75,000 to 250,000 | At mandate | Underwriting, structure, issuer routing, wording coordination, diligence management. |
| Arranger Success Fee | 0.75% to 2.00% of face value | On issuance or confirmation | Defined in mandate and tied to deliverables and closure. |
| Collateral Bridging Facility | Coupon plus closing or OID | At collateral close | Often used when margin is short. Priced to risk and collateral type. |
| Issuing Bank Fees | 0.50% to 2.00% per annum, pro-rated | On issuance | Driven by applicant strength, tenor, issuer policy, and jurisdiction. |
| Confirmation Fees | 0.50% to 3.00% per annum | On confirmation | Driven by issuer and country risk and beneficiary requirements. |
| Legal, Trustee, Security Agent, Escrow | Itemized | As incurred | Security docs, account control, opinions, and closing mechanics. |
| SWIFT And Advising | Bank tariffs | As incurred | Issuance, amendments, and authentication events. |
| Window | Milestone | What Happens |
|---|---|---|
| Days 1 to 3 | Mandate and Intake | Scope confirmed, file opened, KYC pack and transaction documents collected, beneficiary checklist reviewed. |
| Days 4 to 10 | Structure and Collateral Map | Issuer route and ruleset confirmed, collateral requirement sized, collateral bridge workstream launched if needed. |
| Days 11 to 25 | Approvals and Documentation | Wording finalized, legal docs prepared, account control and security path set, bank approvals progressed. |
| Days 26 to 45 | Closing and Issuance | Collateral funded or pledged, MT760 issued, advising and authentication completed, confirmation added if required. |
If you have a live deal with a defined beneficiary requirement, we will revert with scope, indicative fee terms, and the bank route aligned to your case. If margin is tight, we will also outline the collateral bridge path with lenders and LPs.
Request The ContractSometimes, but only when the applicant has sufficient credit strength and an existing bank relationship that supports unsecured exposure. Most applicants should assume some form of margin or security is required.
A defined underlying obligation with a real beneficiary, a contract or term sheet, clear purpose, and a verification path that works bank-to-bank.
That is common. We can structure a collateral bridge and bring lenders and LPs to fill the shortfall into a controlled framework, then run issuance in parallel.
Wording is beneficiary-specific and contract-specific. We align it during underwriting based on the recipient checklist and issuer policy, then coordinate revisions through the bank process.
No. Financely supports SBLC issuance tied to real commercial obligations, trade, performance, or documented credit enhancement. If the use case is not bankable, we say so.
Disclaimer: Financely acts as arranger and advisor. We are not a bank. All engagements require KYC, AML, and sanctions screening. Banks and private credit funds make independent approvals and set final pricing. Ranges above are indicative and depend on applicant strength, tenor, amount, jurisdiction, and instrument terms. Nothing here is a commitment to lend or a binding quote. Any securities activity is conducted through a licensed chaperone, Member FINRA/SIPC.
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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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.
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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.
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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.
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