How to Raise Capital Using a Standby Letter of Credit (SBLC)
How to Raise Capital Using a Standby Letter of Credit (SBLC)
Yes—if the SBLC is genuine, backed by a real transaction, and issued under strict conditions. It can be used to unlock credit, secure project financing, or support a trade facility.
SBLCs are more than just a payment guarantee. In the right structure, they can be used to unlock capital, bridge procurement deals, or enhance creditworthiness. But the key is understanding when and how they work—and how not to fall for fake “monetization” schemes that go nowhere.
What Is an SBLC?
A Standby Letter of Credit (SBLC) is a guarantee issued by a bank or financial institution, confirming that payment will be made if the buyer fails to meet contractual obligations. It’s commonly used in project finance, trade, and performance-based transactions.
Using an SBLC to Raise Capital
Companies with access to a verifiable SBLC can use it to:
- Secure a credit line from a private lender
- Unlock a short-term facility to fund procurement or delivery
- Support a back-to-back trade structure where the SBLC unlocks delivery from a supplier
- Strengthen their position in negotiations by de-risking the counterparty
This Is Not Monetization—It’s Underwritten Credit
Let’s be clear. You can’t just “monetize” an SBLC through a platform and expect millions to drop into your account. That doesn’t happen. What does happen is this:
- You present a genuine SBLC issued under ISP98 or URDG 758
- The lender or investor underwrites the transaction
- They decide whether to extend a facility backed by the instrument
- If accepted, capital is released—usually with strict terms, covenants, and controls
Deals We Structure with SBLC Support
- Solar farm construction backed by PPA and SBLC as performance assurance
- Import/export transactions where the SBLC supports supplier delivery
- Project finance where the SBLC is used to unlock a bridge facility
- Real estate projects requiring guarantees to activate drawdowns
What Kind of SBLC Works?
The SBLC must be:
- Issued via SWIFT (MT760)
- Compliant with ISP98 or URDG 758
- Backed by a valid contract or deal—not speculation
- Issued by a known bank or financial institution
How Financely Helps
We help clients raise capital using SBLCs the right way. Whether you’re the applicant or the beneficiary, we structure the file, coordinate issuance, and engage lenders or LPs to secure the facility. Everything is verified, underwritten, and fully compliant.
Need to Raise Capital With an SBLC?
We help structure, issue, and fund real SBLC-backed transactions through our network of private lenders, LPs, and issuing banks.
Submit Your Deal Book a 1:1 CallGet 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.
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.
Submit a RequestProject Finance
Access 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 RequestAcquisitions
Secure 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 RequestFor 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 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.
