Standby Letter of Credit (SBLC) Services
We arrange bank-issued SBLCs for trade and project contracts. If you do not have cash to post, we can raise or structure the collateral backstop — cash, securities pledge, assignments, or short-tenor debt — subject to underwriting and documentation. No hype. Just executable files with clear wording and credible issuers.
Outcome:
an SBLC that collects when called, sized to your contract, with a funded or secured backstop your bank will accept.
Credible Issuers We Route Through
Final selection depends on appetite, limits, and jurisdiction. We are not affiliated with these banks; availability is case-by-case.
EU
BNP Paribas
Deutsche Bank
US
JPMorgan Chase
Citibank
India
State Bank of India
HDFC Bank
China
ICBC
Bank of China
Need Collateral? We Can Structure It
Backstop Options
- Equity cash or T-bill deposit under pledge
- Securities pledge with agreed haircuts (custody control)
- Assignment of proceeds or offtaker receivables
- Short-tenor ABL/AR line to fund the margin
- Parent/JV guarantee and step-downs tied to milestones
What Underwriting Tests
- Applicant financials, leverage, and coverage
- Contract quality, beneficiary profile, and rule set
- Jurisdiction, currency, and tenor
- Collateral source, control agreements, and FX buffers
Procedure & Timeline
| Step |
What We Do |
Typical Timing |
| 1) Intake |
Contract pack, beneficiary details, requested face, tenor, rule set. |
2–3 days |
| 2) Indicative terms |
Route to issuers, confirm appetite; outline pricing, collateral ask. |
3–7 days |
| 3) Backstop capital (if needed) |
Raise/structure margin via pledge, assignment, or ABL facility. |
1–3 weeks |
| 4) Draft text |
Standby wording aligned to contract; ISP98 or UCP 600 on the face. |
3–5 days |
| 5) Credit approval |
Bank underwriting, limits, collateral docs, facility agreements. |
1–2 weeks |
| 6) Issue & advise |
MT760 issuance, MT767 amendments as needed; add confirmation if required. |
2–5 days |
Fastest path with collateral ready and limits in place: ~10–15 business days. With new backstop capital: ~3–6 weeks. Timing depends on file quality and bank calendars.
Fees
- Bank issuance/commitment:
typically ~1.0%–3.0% per annum on face (billed per quarter).
- Confirmation (if added):~0.25%–2.0% p.a. equivalent, based on issuer, country, tenor.
- Flat charges:
advising, amendments, SWIFT (MT760/767) usually USD 30–300 each.
- Financely mandate/retainer:
USD 25,000–50,000, non-refundable, credited against success fees.
- Success fee:
0.5%–1.0% of face at issuance (case-by-case). Bank/legal costs separate.
Transactions We Cover
Performance Standby
EPC, supply, and services contracts with milestone step-downs.
Advance-Payment Standby
Refund of deposits until delivery and acceptance.
Payment Standby
Backstop for invoices or offtake payments.
Bid/Tender
Short-tenor bid bonds for tenders.
Warranty/Retention
Post-completion obligations and defects periods.
Credit Support
Standbys for PPAs, offtakes, and capacity agreements.
Start Your SBLC Request
Share the contract, face amount, tenor, and beneficiary details. If collateral is tight, tell us what you can pledge — we will map a backstop.
Contact Us
SBLCs are issued by banks after their own credit approval, KYC/AML, and documentation under ISP98 or UCP 600. Issuer names are examples only; availability and terms vary by jurisdiction and credit. Financely acts as arranger; we are not a lender. Upfront “admin” fees to third-party escrow without bank approval are a red flag — we do not do that.