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SBLC

SBLC

SBLC can often be the perfect instrument to raise capital for any type of project by leasing or purchasing the instrument.

It has long been a popular method of raising the initial capital for many types of projects, especially for project owners who do not have hard assets to provide as collateral.

Such instruments can be either leased or purchased at market-driven rates + commissions.

A typical process flow to get an SBLC from any top-tier bank is illustrated below.

Issuing SBLC

If you are unable to get an SBLC issued from your own bank, we can assist you in leasing or purchasing a fresh-cut & fully cash-backed SBLC issued by well-reputed providers from our network, using top-rated banks.

Here are the core reasons sophisticated businesses leverage SBLC/BG for capital raising, expansion, and balance-sheet optimization:

1. ๐—ง๐—ต๐—ฒ๐˜† ๐—ฆ๐—ฒ๐—ฟ๐˜ƒ๐—ฒ ๐—ฎ๐˜€ ๐—ฎ ๐—›๐—ถ๐—ด๐—ต-๐—–๐—ฟ๐—ฒ๐—ฑ๐—ถ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐˜†, ๐—•๐—ฎ๐—ป๐—ธ-๐—œ๐˜€๐˜€๐˜‚๐—ฒ๐—ฑ ๐—”๐˜€๐˜€๐˜‚๐—ฟ๐—ฎ๐—ป๐—ฐ๐—ฒ ๐Ÿฆ
Unlike private guarantees or asset pledges, an SBLC or BG is issued by a regulated financial institution.

This creates immediate credibility uplift when approaching lenders, investors, project financiers, or suppliers.
๐Ÿ’ก It signals:
โ€ข financial discipline
โ€ข institutional validation
โ€ข reduced counterparty risk

2. ๐—ง๐—ต๐—ฒ๐˜† ๐—จ๐—ป๐—น๐—ผ๐—ฐ๐—ธ ๐—Ÿ๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐—ฎ๐—ด๐—ฒ ๐—ช๐—ถ๐˜๐—ต๐—ผ๐˜‚๐˜ ๐—œ๐—บ๐—บ๐—ฒ๐—ฑ๐—ถ๐—ฎ๐˜๐—ฒ ๐—–๐—ฎ๐˜€๐—ต ๐—ข๐˜‚๐˜๐—น๐—ฎ๐˜† ๐Ÿ’น
In many structures, you can raise capital against an SBLC/BG rather than deploying cash upfront.

๐Ÿ’ก This is especially helpful for:
โ€ข project developers
โ€ข import/export businesses
โ€ข real estate firms
โ€ข infrastructure contractors
โ€ข high-growth companies needing non-dilutive financing

3. ๐—ง๐—ต๐—ฒ๐˜† ๐—”๐—ฟ๐—ฒ ๐—š๐—น๐—ผ๐—ฏ๐—ฎ๐—น๐—น๐˜† ๐—ฅ๐—ฒ๐—ฐ๐—ผ๐—ด๐—ป๐—ถ๐˜‡๐—ฒ๐—ฑ ๐—จ๐—ป๐—ฑ๐—ฒ๐—ฟ ๐—œ๐—–๐—– ๐—ฅ๐˜‚๐—น๐—ฒ๐˜€ ๐Ÿ‘
Because SBLCs and BGs operate under international standards (such as ICC URDG 758 or ISP98), they are accepted globally.

4. ๐—ง๐—ต๐—ฒ๐˜† ๐—ฆ๐˜๐—ฟ๐—ฒ๐—ป๐—ด๐˜๐—ต๐—ฒ๐—ป ๐—ก๐—ฒ๐—ด๐—ผ๐˜๐—ถ๐—ฎ๐˜๐—ถ๐—ป๐—ด ๐—ฃ๐—ผ๐˜„๐—ฒ๐—ฟ ๐˜„๐—ถ๐˜๐—ต ๐—œ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜๐—ผ๐—ฟ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—Ÿ๐—ฒ๐—ป๐—ฑ๐—ฒ๐—ฟ๐˜€
Capital providers prioritize security. โš ๏ธ

Naturally, the price, as well as the commissions, to issue the SBLC will vary in either case from time to time depending on the current market demand and other conditions set forth by the providers.

We assist our clients with getting SBLC issued where there are no hidden charges. All the terms & procedures the provider(s) are willing to work with are all documented in a credit Deed of Agreement (DoA).

Although there is a lot of buzz found all across the Internet for issuing such instruments with no upfront fees, we found them not to be credible and a waste of time and resources.

The general timeline to have the DoA finalized and get the SBLC issued is around 5-10 business days.

SBLC features from our network:

sblc checklist

  • Lease and purchase options available.
  • Fully cash-backed.
  • Issued from top-rated banks i.e. HSBC, Barclays, etc.
  • Irrevocable & unconditional.
  • Face value from USD1 Million to USD1 Billion.
  • No hidden charges.
  • No objection for the client to use the SBLC as financial collateral.
  • Willing to enter into a comprehensive DoA which will enable the client to raise funds against the SBLC unconditionally.
  • To allow verbiage which will match the accepted terms of the client’s receiving bank.

Monetizing SBLCs

We can also assist you in monetizingย your instrument for very competitive LTVs.ย 

Please note that we only assist to monetize SBLC/BG issued by providers in our network. We avoid reviewing any instruments issued by any other sources.ย 

Further, we avoid monetizing leased instruments.

We can also assist you with:

      • Corporate / Treasury Bonds

    Important Note:

    We tend to avoid brokers unless you are a direct buyer/seller mandate with a proven track record.

    No noobie brokers with a ‘get rich quick‘ ambition will be entertained.

    The SBLC issuer/provider’s terms and conditions are not subject to any negotiations.

    Serious inquiries only.

    FAQ

    Yes, there will be an upfront fee to be paid to the provider’s designated bank before issuing the MT760.

    This fee generally covers the liquidation of the blocked funds, indemnity fees, and all other related bank charges.

    The amount of the fee will depend on the face value of the SBLC.

    We can work with almost any receiving bank to issue SBLCs.

    You will need to check for the specific procedures in the DOA, which can vary depending on the provider.

    • Generally, you will need to pay the price & commissions within 10-20 days after the softcopy is received by your bank through MT760. The hard copy will be sent through a bonded courier after receipt of payment of the price and all commissions.

    Trading SBLC can offer several benefits, such as:

    Access to liquidity: Trading SBLC can provide immediate access to cash or credit, allowing businesses to finance their trade transactions or meet their working capital needs.

    Risk mitigation: SBLCs can serve as a risk mitigation tool by providing assurance to the beneficiary that they will be paid in case of non-performance by the applicant.

    Flexibility: SBLCs can be used in various trade transactions, including international trade, to secure payments, establish creditworthiness, or mitigate risks.

    Profit potential: SBLCs can be traded or assigned at a discount or for a fee, providing an opportunity for profit through the purchase and sale of these financial instruments.

    SBLC trade involves certain risks that should be carefully considered, including:

    Non-performance risk: The risk that the applicant fails to fulfill their obligations under the trade transaction, leading to a draw on the SBLC.

    Fraud risk: The risk of fraudulent activities by either party, such as submitting fake documents or misrepresenting the trade transaction.

    Compliance risk: The risk of non-compliance with applicable laws and regulations, leading to legal and financial consequences.

    Dispute risk: The risk of disputes arising from differences in interpretation, performance, or other issues related to the SBLC or the trade transaction.

    sblc faq