Credit Enhancement And Bank Instruments
Standby Letter Of Credit Advisory And Bank Introduction Services
Standby Letters of Credit are one of the most misunderstood banking instruments in global finance. On paper they look simple. In practice, most companies fail to obtain one.
Rejections usually stem from missing collateral, weak credit profiles, incorrect structure, or approaching the wrong bank for the transaction type.
Financely provides full-scope SBLC advisory, structuring, and bank introductions for corporates that require a realistic path to issuance.
Why Most SBLC Requests Fail
No Bankable Collateral Story
- Unclear asset backing
- No cash or securities pledged
- Assets not acceptable to banks
Weak Credit Profile
- Thin balance sheet
- Inconsistent financials
- High leverage
Wrong Use Case
- Trying to use SBLC as a loan substitute
- No underlying commercial obligation
Unqualified Intermediaries
- “Program” sellers
- Guaranteed issuance promises
Reality:
banks issue SBLCs as credit exposure. They underwrite them like loans.
What A Standby Letter Of Credit Actually Is
A Standby Letter of Credit is a bank’s irrevocable undertaking to pay a beneficiary if the applicant fails to perform an obligation.
It is not free credit. It is a contingent liability that sits on a bank’s balance sheet.
Common Bankable SBLC Use Cases
- Performance guarantees
- Payment guarantees
- Advance payment security
- Lease and rental guarantees
- Collateral support for financing
SBLC Structures We Advise On
Cash-Collateralized SBLC
- Client posts cash
- Bank issues SBLC
Securities-Backed SBLC
- Treasuries or investment-grade bonds
- Pledged to issuing bank
Credit-Line SBLC
- Issued under approved facility
- Based on borrower credit profile
Third-Party Collateral SBLC
- External guarantor posts collateral
- Applicant pays fees
What Banks Underwrite
Applicant Credit
- Financial statements
- Debt schedule
- Liquidity
Underlying Transaction
- Contract
- Beneficiary
- Obligation covered
Jurisdiction And Compliance
- KYC / AML
- Sanctions screening
How Financely Provides SBLC Advisory
Financely operates as a transaction-led capital advisory desk. We do not sell SBLCs. We structure and route SBLC requests to banks that issue based on real underwriting.
1) Feasibility Review
- Use case validation
- Collateral review
- Credit profile review
2) Structuring
- Instrument type
- Tenor
- Collateral configuration
3) Bank Introduction
- Matched to issuing banks
- Submission of lender-ready package
4) Term Sheet And Closing Support
- Review of bank terms
- Execution coordination
Who This Service Is For
- Operating companies with real contracts
- Project sponsors
- Traders and distributors
- Companies with collateral or credit support
Submit An SBLC Advisory Request
If you have a defined use case and collateral or credit profile, submit your request for feasibility review.
Submit Your Deal
FAQ
Do you guarantee SBLC issuance?
No. Banks decide. Financely structures and routes.
Can I get an SBLC without collateral?
Rarely. Most issuance requires cash, securities, or strong credit lines.
Do you sell SBLCs?
No. We provide advisory and bank introductions only.
Are there upfront fees?
Yes. Feasibility, structuring, and packaging require paid engagement.
Important:
This page is for general information only and does not constitute legal, tax, or investment advice.
Financely is not a bank and does not guarantee issuance.