Back-to-back Letter of Credit

Efficient Trade Finance with Back-to-Back Letters of Credit

Back-to-Back Letters of Credit (LC) provide a seamless solution for businesses managing complex trade finance operations. This facility enables an intermediary (such as a trading company) to use an inbound LC from a buyer as collateral to issue an outbound LC to their supplier.

Financely partners with AAA-rated banks globally, facilitating the issuance of Back-to-Back LCs to support international trade. This tool bridges liquidity gaps while ensuring all parties meet their contractual obligations, streamlining the supply chain.

  • Available for global businesses in diverse sectors
  • Minimum LC value: $1 Million USD
  • Maximum facility size: $25 Million USD

To begin the process, submit a request here. Financely will guide you through the issuance, ensuring efficiency and compliance.

Detailed Term Sheet for Back-to-Back Letters of Credit
Parameter Details
Minimum LC Value $1 Million USD
Maximum Facility Size $25 Million USD (Syndication possible for larger facilities)
Issuing Banks AAA-rated global banks, including HSBC, Citibank, Standard Chartered, and others.
Fees and Costs
  • Origination Fee: 1.25% – 2.5% of LC value
  • Processing Fee: $25,000 to $100,000, based on complexity
  • Retainer Fee: $50,000 (refundable if the LC is not issued)
Timeline
  • 10–15 business days for standard transactions
  • Additional time required for overseas due diligence
Documentation Required
  • Inbound LC details
  • Supplier and buyer contracts
  • Company financials and KYC documents
  • Proof of transaction flow
Renewals Facility renewals and increases available upon financial review.
Process
  1. Submit a Request for Quote
  2. Receive and sign engagement letter
  3. Transfer the refundable retainer
  4. Submit required documentation
  5. Issuance of Back-to-Back LC
Disclaimer: Financely facilitates Back-to-Back LC issuance through AAA-rated banks. Facilities are subject to compliance checks, due diligence, and approval. Financely is not a securities broker or dealer and does not guarantee funding outcomes.

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.

Trade Finance

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.

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For Banks

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.

Submit a Request

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.