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.