Financely Group LLC Standby Letter of Credit Issuance Term Sheet

Introduction:

Financely Group LLC ("Financely") is pleased to offer a Standby Letter of Credit (SBLC) Issuance Facility to qualified clients. This Term Sheet outlines the terms and conditions under which Financely will issue SBLCs, catering to two distinct scenarios: clients with existing collateral and clients requiring assistance in raising collateral.

Facility Overview:

The SBLC Issuance Facility is designed to support clients' business transactions, providing a financial guarantee to third parties. SBLCs serve as a vital tool in international trade, project financing, and other commercial dealings, enhancing the credibility of the client in the eyes of partners and suppliers.

Issuing Banks:

• JPMorgan Chase
• China Construction Bank 

Terms for Clients with Collateral:

• Collateral Requirement: Clients must pledge collateral valued at a minimum of 35% of the SBLC amount. Acceptable collateral includes cash deposits, marketable securities, real estate, and other tangible assets subject to Financely's approval.
• SBLC Amount: Minimum issuance of USD 2,000,000.
• Fees: A one-time issuance fee of 2% of the SBLC amount, payable upon acceptance of this Term Sheet.
• Interest Rate: Determined based on the risk assessment and capital structure, typically ranging from LIBOR + 6% to 9% annually.
• Validity Period: SBLCs are typically valid for one year, with the option for renewal subject to review and agreement.

Terms for Clients Without Collateral (Requiring Capital Raising):

• Capital Raising: Financely will assist in raising the required collateral through its network, involving the creation of an SPV or leveraging existing assets through structured financing solutions.
• SBLC Amount: Minimum issuance of USD 2,000,000.
• Fees: A one-time issuance fee of 2% of the SBLC amount plus additional fees associated with the capital raising process, determined based on the complexity and risk involved.
• Interest Rate on Raised Capital: Determined based on the risk assessment and capital structure, typically ranging from LIBOR + 6% to 9% annually.
• Validity Period: Same as above, with SBLCs typically valid for one year and renewable.

Security and Collateral Agreement for Capital Raising:

• Raised Capital Security: Clients will need to provide security over the raised capital, which could include liens on assets, corporate or personal guarantees, or other security interests as deemed acceptable by Financely.
• Collateral Valuation: Collateral will be appraised by an independent third party to ensure fair market value is attributed and to determine the LTV ratio.

Closing Procedure:

1. Term Sheet Acceptance: Client accepts the terms outlined herein by contacting Financely.
2. Due Diligence and Collateral Assessment: Comprehensive review of the client's financial standing, business case, and collateral (if already available).
3. Capital Raising (if applicable): Execution of strategies to raise the required collateral on behalf of the client.
4. Execution of Agreements: Signing of definitive agreements detailing the terms of SBLC issuance and collateral arrangement.
5. Fee Payment: Payment of issuance fees and, if applicable, capital raising fees.
6. SBLC Issuance: Financely issues the SBLC in favor of the designated beneficiary.

Governing Law:

This Term Sheet and any resultant transactions shall be governed by the laws of the State of New York, USA.

Acknowledgment:

This Term Sheet is intended to provide a comprehensive overview of Financely's SBLC Issuance Facility. It serves as a preliminary agreement to facilitate further discussions and is not a binding document. Final terms are subject to detailed due diligence, credit approval, and execution of definitive agreements.

For more detailed information and to proceed with an application, please request a quote or book a consultation.