Standby Letter of Credit (SBLC) Issuance Backed by Margin Collateral
In 2023, over $50 billion in SBLCs were issued globally to secure trade and project commitments—proof that counterparties rely on the highest-quality guarantees. At Financely, we arrange margin collateral on your behalf (no existing collateral required), post it to an A-rated bank, and handle full underwriting and distribution. You receive an SBLC with minimal upfront hassle and maximum credibility.
Request Your SBLC ProposalWhat Is an SBLC Issuance?
A standby letter of credit (SBLC) is an irrevocable guarantee issued by a bank on behalf of a client, assuring payment if contractual obligations go unmet. When you lack tradable collateral, Financely steps in, posts margin collateral to an A-rated bank in exchange for a structured issuance fee, and the bank issues an SBLC in your name. Beneficiaries gain unconditional payment security, and you preserve working capital—because your goods, receivables, or planned revenue streams serve as the economic basis for our margin funding.
Our SBLC Issuance Solutions
Margin Collateral Arrangement
We post cash or eligible securities as margin with an A-rated bank. No requirement for your own collateral—Financely sources and secures the margin facility.
Full Underwriting & Documentation
Our team prepares all underwriting packages, including beneficiary requirements, SBLC text, and UCP 600 or ISP 98 compliance checks, ensuring a smooth bank review.
A-Rated Bank Issuance
SBLCs are issued by top-tier, A-rated banks chosen for their global reputation and strict adherence to UCP 600 rules—giving beneficiaries absolute confidence in performance.
Distribution to Beneficiary
Once the SBLC is issued, Financely handles swift transmission to the beneficiary—via SWIFT MT760—so you meet contractual deadlines without delay.
Rapid Issuance & Renewal
From initial consultation to issuance in as few as 7–10 business days. Renewals follow the same streamlined process, guaranteeing uninterrupted guarantees for multi-year projects.
Competitive Margin Funding Fee
Your fee is based on posted margin—typically 1.5% to 2.5% annually on the SBLC amount—reflecting our underwriting and distribution expertise.
Benefits of Margin-Backed SBLCs
No Existing Collateral Required
We provide the margin collateral. You preserve working capital and use your goods or purchase contracts to underpin the SBLC economically.
Bank Credit Quality
SBLCs are issued by A-rated banks, ensuring counterparty trust and acceptance under stringent UCP 600 or ISP 98 guidelines.
Speed & Certainty
Indicative terms available within days; issuance completed in 7–10 business days, avoiding protracted bank negotiations.
Enhanced Trade Credibility
Counterparties view a bank-issued SBLC as a guarantee of performance, enabling you to secure larger trade or construction contracts without prepayment.
Global Acceptance
A-rated banks’ SBLCs are recognized worldwide, facilitating cross-border trade, project financing, or concession bid guarantees.
Transparent Fee Structure
Our all-in margin funding fee (1.5%–2.5% annually) covers collateral posting, underwriting, bank issuance, and distribution—no hidden charges.
Why Choose Financely for Margin-Backed SBLCs
End-to-End Execution
From collateral arrangement to final SWIFT transmission, we handle every step—underwriting, documentation, issuance, and distribution—so you can focus on your business.
A-Rated Bank Relationships
We maintain strategic partnerships with leading A-rated banks, ensuring your SBLC is underwritten at competitive rates and accepted by demanding beneficiaries.
Unconditional Enforceability
All SBLC text adheres strictly to UCP 600 or ISP 98 standards. Beneficiaries can draw on the guarantee without disputes if obligations are not met.
Proven Track Record
Over $3 billion in collateral-backed guarantees issued globally, spanning trade finance, construction bonds, and project guarantees. Our experience speaks for itself.
How It Works
1. Initial Consultation & Margin Proposal
Discuss SBLC requirements, trade or project details. We propose a margin structure—cash, marketable securities, or short-term instruments—to secure the SBLC.
2. Underwriting & Bank Selection
We prepare the underwriting package, select an A-rated bank partner, and negotiate issuance fees, tenor, and beneficiary conditions.
3. Margin Posting & Documentation
Financely posts the agreed margin collateral to the bank. We coordinate legal docs—margin agreement, SBLC application, and bank credit approval.
4. SBLC Issuance & Distribution
The bank issues the SBLC, and we transmit the guarantee to the beneficiary via SWIFT MT760. Your obligation is limited to maintaining the margin and paying our fee.
5. Renewal or Cancellation
As your transaction or project evolves, we manage renewals or cancellations—returning margin collateral once the SBLC expires or is released.
Acquire an A-Rated SBLC Backed by Margin—Fast
Don’t let lack of collateral restrict your trade or project opportunities. Financely arranges the margin, underwrites, and delivers an SBLC from an A-rated bank—so you meet your obligations with absolute confidence.
Our Team
Appointed directly by the owners, this team serves as the operational core of Financely. They manage active mandates, oversee outsourced specialists, and ensure every transaction moves forward with clarity and speed. With collective experience spanning investment banking, credit structuring, legal execution, and investor relations, they bring institutional discipline to every deal we touch.
Pascal Meier
Onboarding & Resourcing Lead
Coralie Dubois
Director
Jason Leung
Head of Credit & Structuring
Lucas Reinhardt
IR & Distribution
