We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
A standby letter of credit (SBLC) is an irrevocable undertaking issued by a bank on behalf of an applicant, guaranteeing payment to a beneficiary if the applicant fails to perform a contractual or financial obligation. SBLCs are issued via SWIFT MT760 and governed by ISP98 or UCP600. Financely arranges SBLC issuance and financing through its structured trade and commodity finance practice.
A standby letter of credit is a secondary payment undertaking: the issuing bank promises to pay the beneficiary if the applicant (the bank's client) fails to fulfil its contractual obligations. Unlike a documentary letter of credit, which is intended to be drawn upon as part of a normal trade transaction, an SBLC is intended to remain undrawn. It is called upon only in the event of non-performance or default by the applicant.
The SBLC is independent of the underlying contract between the applicant and the beneficiary. The issuing bank's obligation is triggered solely by a complying documentary presentation from the beneficiary, not by proof of the underlying breach. This independence is one of the most important legal features of the instrument.
Performance vs. financial SBLCs: A performance SBLC covers the applicant's failure to perform a contractual obligation, such as failing to deliver goods or complete a project. A financial SBLC covers the applicant's failure to make a financial payment, such as a loan repayment or a lease obligation. Both are structured and issued in the same way; the difference lies in the triggering condition stated in the instrument.
These three instruments are frequently confused. The table below sets out the key distinctions using the definitions and frameworks established by the ICC Academy's comprehensive guide to standby letters of credit.
| Feature | SBLC | Bank Guarantee (Demand) | Documentary LC |
|---|---|---|---|
| Primary purpose | Security against non-performance or non-payment | Security against non-performance or non-payment | Primary payment mechanism for a trade transaction |
| Intended to be drawn | No: drawn only on default | No: drawn only on default | Yes: drawn upon as part of normal transaction |
| Governing rules | ISP98 or UCP600 (ICC) | URDG 758 (ICC) | UCP600 (ICC) |
| SWIFT message | MT760 | MT760 | MT700 / MT710 |
| Common in | US, Asia, international trade and finance | Europe, Middle East, project finance | Global merchandise trade |
| Documents required to draw | Written demand and SBLC-specified documents | Written demand; often statement of default | Full set of shipping and trade documents |
| Independence from contract | Yes: fully independent | Yes: fully independent under URDG 758 | Yes: independent of underlying sale contract |
An SBLC is issued by a bank (the issuing bank) via SWIFT MT760, which is the standardised messaging format used by banks to transmit guarantee and SBLC instruments internationally. The MT760 is transmitted to the beneficiary's bank (the advising or confirming bank), which authenticates the message and notifies the beneficiary that the instrument has been issued in their favour.
The applicant submits an SBLC application to their bank, providing details of the beneficiary, the underlying obligation, the amount, the expiry date, the applicable rules (ISP98 or UCP600), and the drawing conditions.
The issuing bank assesses the applicant's creditworthiness and approves a credit line to cover the SBLC. The applicant may need to provide cash collateral, a counter-guarantee, or other security to support the issuance.
The issuing bank transmits the SBLC text to the beneficiary's bank via authenticated SWIFT MT760. The MT760 contains all material terms: amount, beneficiary, expiry, drawing conditions, and applicable rules.
The beneficiary's bank advises the SBLC to the beneficiary, confirming the instrument is authentic. In some transactions the beneficiary requests the advising bank to also confirm the SBLC, adding the confirming bank's independent payment undertaking.
If the applicant defaults on the underlying obligation, the beneficiary presents a complying drawing demand to the issuing (or confirming) bank. The bank examines the documents and pays if the presentation complies with the SBLC terms.
An importer's bank issues an SBLC in favour of an overseas exporter, guaranteeing payment if the importer fails to pay under an open account arrangement. The exporter ships goods on open account terms, with the SBLC providing payment security in place of a documentary LC.
Contractors and project owners use SBLCs as performance bonds and advance payment guarantees in construction contracts. The beneficiary can draw on the SBLC if the contractor fails to perform or defaults on advance repayment obligations.
An SBLC issued by a rated bank can be used as collateral for a loan or credit facility. The lender accepts the SBLC as security, advancing funds against it. This is known as SBLC monetisation and is used in structured finance, real estate, and project funding transactions.
Commodity traders use SBLCs as credit support in large-volume purchase and supply contracts, particularly where the counterparty requires a bank-backed payment guarantee but the volume or duration makes a documentary LC impractical.
Tenants and developers use SBLCs as security deposits for commercial leases and property transactions. The landlord or counterparty holds the SBLC as a guarantee of the tenant's rental obligations, providing recourse in the event of default.
Companies tendering for large contracts issue SBLCs in favour of the contracting party as bid bonds, providing assurance that, if awarded the contract, the tenderer will execute it. The SBLC is returned or cancelled once a contract is signed.
SBLC finance refers to the use of a standby letter of credit as a financial instrument to access funding. SBLC monetisation is the process by which the holder of an SBLC uses it as collateral to obtain a loan or credit line from a financier, typically receiving between 60% and 90% of the instrument's face value as a cash advance, depending on the issuing bank's credit rating and the terms of the SBLC.
Financely arranges SBLC financing and monetisation structures as part of its structured commodity and trade finance mandates. We assess the issuing bank, instrument terms, and monetisation requirements before introducing suitable counterparties.
SBLC fraud risk: The market for SBLC leasing, monetisation, and trading contains a high volume of fraudulent instruments and intermediary scams. Legitimate SBLCs are issued by rated banks via authenticated SWIFT MT760 and are verifiable through the issuing bank directly. Any arrangement involving unrated issuers, paper instruments, or upfront fees to intermediaries before an SBLC is issued should be treated with extreme caution.
| Fee component | Typical range | Notes |
|---|---|---|
| Issuance fee | 1% to 2% per annum on face value | Charged by the issuing bank; reflects applicant credit risk |
| Amendment fee | Fixed per amendment | Charged when terms such as amount or expiry are modified |
| Confirmation fee | 0.5% to 1.5% per annum | Charged by the confirming bank if confirmation is requested |
| Advising fee | Fixed or small percentage | Charged by the beneficiary's bank for advising the instrument |
| Arrangement fee (via broker) | 0.5% to 2% of face value | Charged by arrangers such as Financely for sourcing the issuing bank |
A documentary letter of credit (documentary LC or commercial LC) is the primary payment vehicle in a merchandise trade transaction. The exporter ships goods, presents shipping documents to their bank, and the issuing bank pays upon presentation of complying documents. The documentary LC is intended to be drawn upon as part of every transaction it covers.
Letter of credit financing refers to the broader practice of using LC instruments, including documentary LCs, to access pre- or post-shipment funding. Banks and trade finance providers advance funds against LC-backed receivables, allowing exporters to receive payment before the LC proceeds are actually collected from the issuing bank.
Financely arranges SBLC issuance from rated banking counterparties via SWIFT MT760, acting as intermediary between the applicant and the issuing bank. We structure the instrument terms, negotiate fees, and coordinate the MT760 transmission with the beneficiary's bank. For SBLC monetisation and financing transactions, we introduce monetisation counterparties from our structured finance network.
A standby letter of credit (SBLC) is an irrevocable bank undertaking to pay a beneficiary if the applicant fails to perform a contractual or financial obligation. It is a secondary instrument, intended to remain undrawn, and is called upon only in the event of default by the applicant.
SBLC stands for standby letter of credit. It is a bank instrument issued via SWIFT MT760, governed by ISP98 or UCP600, that provides a payment guarantee to a beneficiary in the event of the applicant's default. SBLCs are used in trade, project finance, real estate, and structured finance transactions.
A standby letter of credit and a bank guarantee serve the same economic purpose: both provide a beneficiary with a bank-backed undertaking to pay in the event of the applicant's default. The key difference is governing rules: SBLCs are subject to ISP98 or UCP600, while demand guarantees are subject to URDG 758. SBLCs are more common in US and Asian markets; demand guarantees are more common in European and Middle Eastern markets.
SBLC finance refers to the use of a standby letter of credit as a financial instrument to support a transaction or access funding. This includes using an SBLC as collateral for a loan, as security in a trade transaction, or as a monetisation instrument through which the SBLC holder accesses cash from a financier.
SBLC monetisation is the process of using an SBLC as collateral to obtain a cash advance from a lender or financier. The lender advances a percentage of the SBLC face value, typically 60% to 90%, with the SBLC serving as security. The advance is repaid from the borrower's project proceeds or other sources by the time the SBLC expires.
An SBLC provider is a bank or financial institution that issues standby letters of credit on behalf of applicants. Rated commercial banks are the most common providers. Arrangers such as Financely act as intermediaries, sourcing the issuing bank, structuring the instrument, and coordinating the SWIFT MT760 transmission on behalf of clients who require an SBLC.
MT760 is the SWIFT message format used to transmit standby letters of credit and bank guarantees between banks. When a bank issues an SBLC, it sends an authenticated MT760 message via the SWIFT network to the beneficiary's bank, which then notifies the beneficiary that the instrument has been issued in their favour. MT760 is the standard delivery mechanism for SBLCs in international banking.
A documentary letter of credit is a primary payment instrument in merchandise trade, governed by UCP600. The issuing bank undertakes to pay the exporter upon presentation of complying shipping and trade documents. Unlike an SBLC, a documentary LC is intended to be drawn upon as part of every transaction it covers.
Letter of credit financing refers to the use of LC instruments to access pre- or post-shipment funding. Banks and trade finance providers advance funds against LC-backed receivables or provide pre-shipment loans supported by an LC, allowing exporters to receive early payment and importers to extend their payment terms.
The main risks in SBLC transactions include fraudulent instruments issued by unrated or non-existent banks, scam intermediaries charging upfront fees before an instrument is delivered, and instruments that do not conform to ISP98 or UCP600. Legitimate SBLCs are issued by rated banks via authenticated SWIFT MT760 and can be verified directly with the issuing bank. Any arrangement requiring cash payment before delivery of a bank-authenticated instrument should be treated as a fraud risk.
Financely arranges SBLC issuance from rated banking counterparties via SWIFT MT760 and structures SBLC monetisation and financing transactions. Submit your deal and we will revert with terms.
Disclaimer: This page is for informational purposes only and does not constitute financial, legal, or investment advice. Financely operates on a best-efforts basis. All engagements are subject to diligence, KYC/AML compliance, sanctions screening, and counterparty credit approval. No guarantee of instrument issuance or monetisation outcomes is expressed or implied.
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.
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestAccess non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestSecure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFinancely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
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.
To proceed,
request a quote
and receive indicative commercial terms. If you require guidance before engaging,
book a paid telephone consultation.
Security notice: we are aware of third parties using Financely’s name without authorization. Only emails sent from our official domains and communications through our portal are valid. Please verify any outreach before sharing documents or sending payments, and read our impersonation warning.
Email supportdesk@financely-group.com for general enquiries, press & partnership requests.
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. Email
supportdesk@financely-group.com for general enquiries.
