A standby letter of credit is a bank undertaking to pay the beneficiary on compliant demand. It backs performance or payment if the applicant fails to perform. The bank’s promise sits on approvals, security, and documented wording under a recognized rule set.
SWIFT: issuance via MT760, amendments via MT767, pre-advice or free-format via MT799. Advising and authentication are bank-to-bank.
Define face value, currency, tenor, expiry, purpose, and beneficiary jurisdiction. Align to the underlying contract.
Applicant, UBOs, counterparties, and transaction purpose screened before bankable steps.
Bank determines margin and acceptable security. If there is a shortfall, we raise collateral with private credit into a controlled account with a trustee or security agent.
Legal confirmation of draw mechanics, expiry, place of presentation, and rule set.
SWIFT MT760 sent. Advising bank authenticates. If required, a confirming bank books its undertaking for the beneficiary.
| Document | Why It Matters | Frequent Mistake |
|---|---|---|
| Audited financials | Cash flow, leverage, and limits testing | Out-of-date or management-only statements |
| Underlying contract | Proves purpose and beneficiary conditions | Missing governing law or vague triggers |
| Board resolution | Authority to issue the standby | Unsigned or conflicting signatories |
| Collateral schedule | Defines margin, pledge, and control | No account control path or old valuations |
| Draft text | Aligns rule set and draw conditions | Wrong rules, expiry, or presentation place |
| Workstream | Fee Basis | When Charged | Notes |
|---|---|---|---|
| Arranger retainer (Financely) | USD 75,000 to 250,000 | At mandate | Structuring, bank approach, wording, diligence coordination |
| Arranger success fee | 0.75% to 2.00% of face | On issuance and or confirmation | Defined in mandate |
| Collateral facility (private debt) | Coupon plus OID or closing | At collateral close | Typical coupon 10%–16% p.a.; OID or closing 1%–3% |
| Issuance fee (issuing bank) | 0.50%–2.00% p.a. pro rated | On issuance | Applicant, tenor, and country driven |
| Confirmation fee (confirming bank) | 0.50%–3.00% p.a. | On confirmation | Issuer and country risk |
| Legal, trustee or security agent, escrow | Itemized schedules | At signing and as incurred | Security docs, account control, opinions |
| SWIFT, advising, amendments | Bank tariff per event | As incurred | MT760 issuance, MT767 amendments |
| Rating (if required) | USD 40,000 to 250,000+ | As incurred | For note programs or insurance investors |
| Day | Milestone | What Happens |
|---|---|---|
| Day 1 | Mandate and intake | Sign mandate. Submit applicant financials, KYC, purpose, draft wording, beneficiary details |
| Day 3 to 7 | Collateral term sheet | Private debt soft clear. Define pledge or cash collateral with trustee or security agent |
| Day 8 to 14 | Wording and bank route | Finalize ISP98 or UCP 600 or URDG 758 terms. Identify issuing and confirming banks. Price bands agreed subject to approval |
| Day 15 to 28 | Approvals and documents | Collateral docs and opinions. Account control. Issuing bank credit approval. Fee letters signed. SWIFT setup |
| Day 29 to 35 | Fund collateral | Private debt funds backstop. Pledge or escrow in place |
| Day 36 to 45 | Issuance and confirmation | MT760 sent. Advising bank authenticates. Confirming bank books its undertaking if required |
| Day 46 plus | Monitoring | Amendments via MT767 if needed. Monitor until expiry or cancellation. Collateral line reduces as obligations fall away |
Answer a few questions to see a ballpark of upfront costs and annual charges. This is a guide, not an offer.
Assumptions: retainer and ranges per tables above; legal and trustee placeholder USD 85,000; SWIFT and advising USD 7,500; OID or closing on collateral 2 percent; private debt coupon varies by risk and collateral type. Fees scale with face value and risk.
We will return scope, fee terms, and the bank route aligned to your case.
Request the ContractFinancely 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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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.
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, engagement 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. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as an
exempt foreign private adviser pursuant to the Dodd-Frank Act, subject to applicable exemptions from certain regulatory requirements. Our services and regulatory status may vary based on the location and nature of the transaction. Click
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