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.
If you are unable to get an SBLC issued from your own bank, we can assist you to lease or purchase a fresh-cut & fully cash backed SBLC issued by well-reputed providers using top-rated banks.
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 up-front fees or hidden charges. All the terms & procedures the provider(s) are willing to work with are all documented in a credit Deed of Agreement (DoA).
The providers willing to work with no upfront fees generally do tend to have stricter terms and conditions. However, these terms are aimed to keep both parties safe and to avoid any fraud from happening.
The general timeline to have the DoA finalized and get the SBLC issued is around 7-10 business days.
SBLC features from our network:
- Fully cash-backed.
- Issued from top-rated banks i.e. HSBC, Barclays, etc.
- Irrevocable & unconditional.
- Face value from USD100 Million to USD5+ Billion.
- No upfront fee for both lease or purchase.
- 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.
We can also assist you in monetizing your instrument for very competitive LTVs.
Please note that we do not review draft SBLCs for monetization. We will need a fully legible copy of an already issued SBLC parked at the sender’s bank, where the verbiage, bank details, and client information are clearly legible. Only upon reviewing the copy of the SBLC & sender’s CIS, we can quote the LTV% that we can offer for the particular instrument.
We prefer purchased (not leased) and fully cash-backed SBLCs for monetization.
A full scope of due diligence will be conducted on the sender’s CIS along with the SBLC copy.
We can also assist you with:
- Corporate / Treasury Bonds
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.
Yes, if you are looking for leased SBLC with no upfront fees. The minimum rating your receiving bank is preferred to have is ‘A+‘. This rating may change depending upon the provider’s terms.
Fitch ratings are preferred.
But we can work with almost any bank for issuing SBLCs with upfront fees.
You will need to check for the specific procedures in the DOA, which can vary depending on the provider.
- For SBLCs without any upfront fee, you will need to pay the price & commissions within 3-5 days after the softcopy is received by your bank through MT760. The hardcopy will be sent through 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.