Third-Party Collateral Guarantee for SBLC Issuance

Third-Party Collateral Guarantee | SBLC Backing Facility

Third-Party Collateral Guarantee for SBLC Issuance

We secure funded collateral at a bank so an SBLC can be issued in your name and delivered by MT760. The collateral provider posts cash or eligible securities under strict controls. You sign indemnities and provide margin. The SBLC text cites ISP98 with objective draw conditions. Funds move through escrow and account control, not promises. This is a credit enhancement service for real contracts, not a monetization scheme. No em dashes are used in this document.

Snapshot: Sizes from 2 million USD. Performance, payment, and advance payment SBLCs. Vetted beneficiary and contract. Applicant indemnity and security. Escrow and account control agreements. Optional insurance wraps. Four to six week timeline with responsive parties.

What We Deliver

A bankable collateral backed SBLC facility. We validate the underlying contract, draft ISP98 text with clear evidence requirements, seat a collateral provider at the issuing bank, set applicant margin and security, and coordinate escrow and account control. Compliance is handled up front to avoid failed issuances. You receive a closing pack that the beneficiary can accept without drama.

Who It Is For

Use Case Why This Fits Notes
Trade Payment SBLC Supplier requires a standby before shipment Tie to shipment docs and invoice checks
Performance SBLC for EPC or PPP Sponsor lacks full cash margin but has award and milestones Step down exposure with progress certificates
Advance Payment Guarantee Counterparty pays upfront and wants comfort Mirror delivery schedule and refund triggers
M and A Earnout Standby Backstop deferred consideration without tying cash Objective metrics for draws

Pricing And Economics

Cost reflects underlying risk and control strength. Better drafting, clean KYC, and verified beneficiaries reduce price. There is no free SBLC. Real providers fund collateral and charge for exposure.

Lever Typical Range Impact
Upfront Premium 3 to 7 percent of face Compensates funded collateral and underwriting
Annual Fee 2 to 3 percent if renewed Covers ongoing exposure
Applicant Margin 10 to 40 percent cash or security Skin in the game and first loss
Tenor 6 to 12 months typical Shorter tenor reduces risk cost
Draft Quality ISP98 with objective conditions Limits arbitrary calls and disputes

Process And Timeline

Week What Happens
Week 1 KYC, mandate, contract review, beneficiary vetting, draft SBLC text
Week 2 Collateral provider approval, escrow and ACO terms, indemnities and security
Week 3 Bank line allocation, final text, CP list agreed
Week 4 Collateral posted, escrow live, ACO executed, issuance date fixed
Week 5 to 6 MT799 pre advice if needed, MT760 issued, closing pack delivered

Four to six weeks is typical with responsive stakeholders. Complex jurisdictions can take longer.

Request Your SBLC

Submit your details and contract. We will underwrite, structure, and coordinate a clean issuance with a funded collateral provider.

Apply For SBLC Support

FAQ

What sizes do you handle
From 2 million USD. Larger standbys can be syndicated with multiple providers.
Do you lend directly
No. We structure and distribute through regulated partners. Banks issue and hold collateral under control agreements.
Which rules apply
ISP98 by default. UCP600 if required by the counterparty. Drafting uses objective draw conditions and evidence.
Will I need to post margin
Yes. Applicants are expected to provide cash margin or security. Size depends on risk and tenor.
Can the SBLC be transferred
Standbys are not transferable like commercial LCs. Assignment of proceeds may be possible if the bank and beneficiary agree.
How do you prevent abusive calls
Verified beneficiary, contract checks, ISP98 text with precise draw conditions, and escrow controls. Calls must be compliant to be paid.

Financely structures, underwrites, and distributes opportunities to investors and banks through regulated partners. We are not a broker dealer and do not issue securities or letters of credit. Nothing here is an offer or a commitment to invest or lend. All transactions are subject to KYC, AML, sanctions screening, counterparty verification, and bank approval. Terms, pricing, and timelines depend on contract quality, jurisdiction, and market conditions.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

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.

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Request a Proposal / Submit a Deal

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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Financely 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.

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Once 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.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.