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SBLC Monetization

If you're a trader with a Standby Letter of Credit (SBLC) from a third party and need to secure liquidity, we can help. Our service enables you to raise bridge capital against an existing, confirmed SBLC.


You can also pledge your accounts receivables to enhance the capital you can access. This ensures you have the necessary funds to maintain and grow your operations.


Key benefits include:

  • Access to bridge capital quickly
  • Utilization of existing SBLC for liquidity
  • Ability to pledge accounts receivables for additional funding


Request a quote today to see how we can meet your SLOC monetisation needs.

Letter of Credit Discounting Term Sheet
Parameter Details
Borrower
  • Exporters or sellers holding confirmed, irrevocable letters of credit.
  • Corporate entities or SMEs with proven operational and trade history.
Issuer Bank
  • Reputable banks with strong credit ratings (AA or higher).
  • Compliant with UCP 600 rules.
Facility Type
  • LC Discounting facility to monetize the LC before maturity.
  • Non-recourse or recourse options available based on LC terms.
Facility Amount
  • Up to 100% of LC face value, minus applicable fees.
  • Minimum: $1 million; Maximum: $200 million.
Tenor
  • 30 to 180 days, matching the LC maturity period.
  • Longer tenors available for deferred payment LCs.
Retainer Fee
  • Non-refundable: $30,000 to $75,000 based on facility size.
  • Payable upon term sheet execution.
Discounting Rate
  • LIBOR + 1.5% to 3.5%, depending on issuer bank rating.
  • Fixed rates available for specific transactions.
Conditions Precedent
  • Submission of the original LC document.
  • Verification of LC authenticity with the issuing bank.
  • Compliance with all trade and regulatory requirements.
Risk Minimization Checklist
  • Confirm LC terms with both buyer and issuing bank.
  • Verify counterparty credibility and payment history.
  • Secure counterguarantees, if necessary, from a reputable institution.
Disbursement Timeline
  • Funds disbursed within 5-10 business days after submission of all required documents.
  • Subject to successful verification and approval.
*financely.io – Trade & Project Finance Advisory*
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