Back-To-Back Letter Of Credit Services

Notice. This page is informational and general in nature. Any transaction remains subject to third-party underwriting, KYC and AML checks, sanctions screening, legal documentation, collateral controls, and final credit approval.

Back-To-Back Letter Of Credit Issuance Services

If your supplier needs a bankable instrument and your buyer structure is complex, back-to-back letter of credit execution can unlock the deal.

FG Capital Advisors helps companies arrange back-to-back letter of credit issuance through third-party banks. We handle structuring, bank introductions, margin planning, and execution support for commodity and non-commodity transactions.

Request A Quote

Where This Service Fits

Commodity trades where an intermediary must open a second LC against a received LC.
Cross-border supply chains with split counterparties and strict documentary conditions.
Distributor and trader transactions where direct supplier credit is not available.
EPC, equipment, and industrial contracts requiring staged trade instruments.
Time-sensitive shipments where contract performance depends on fast bankable issuance.

How A Back-To-Back LC Structure Works

Layer	Role In The Structure	Main Risk Point	Control We Build
Primary LC	Buyer-side instrument received by intermediary/exporter.	Wording or timing mismatch.	Term alignment and documentary mapping before circulation.
Secondary LC	Mirror instrument issued in favor of supplier.	Margin and collateral sufficiency at issuing bank.	Margin strategy with underwriting-backed structure.
Document Flow	Synchronizes shipment docs, presentation windows, and payment triggers.	Discrepancies that delay payment.	Pre-check workflow and exception protocol.
Settlement Chain	Coordinates drawdown and reimbursement sequence.	Cash timing gaps between legs.	Structured timeline, reserve logic, and contingency path.

What We Handle Under The Mandate

Workstream	Scope	Output	Underwriting Dependency
Structure Design	Build the back-to-back LC framework around contract and logistics reality.	Transaction map and bank-ready structure brief.	Final acceptance by issuing bank credit teams.
Bank Introductions	Targeted introductions to banks and specialist providers that can review the profile.	Live underwriting conversations.	Provider-specific eligibility and jurisdiction policy.
Margin Planning	Plan margin support when applicant collateral is insufficient at day one.	Structured margin-raise path.	Approval by both margin and issuance counterparties.
Documentation	Build lender-ready file and documentary condition alignment.	Submission-grade package with clear risk narrative.	Full KYC, AML, and compliance acceptance.
Execution Support	Coordinate term negotiation and closing sequence with counsel and banks.	Issuance-ready workflow.	Definitive legal documentation and final approvals.

Transaction Types Covered

Category	Typical Use Case	Common Bottleneck	Structuring Focus
Metals And Minerals	Bulk or containerized commodity flows with staged shipment schedules.	Margin shortfall and document mismatch.	LC language discipline and draw timeline control.
Energy Products	Fuel and refined product trades with strict counterpart conditions.	Counterparty risk and fast presentation deadlines.	Clean documentary matrix and contingency terms.
Agricultural Commodities	Origin-to-destination trades with quality and shipment documentation sensitivity.	Non-compliant presentation packets.	Document control workflow and fallback plan.
Industrial Goods	Equipment and component imports requiring supplier comfort.	Contract-to-LC term gaps.	Clause alignment and bankability review.
Other Commercial Trades	Non-commodity B2B transactions with cross-border payment risk.	Unclear risk allocation and weak compliance file.	Structured risk map and full onboarding package.

Clear Step-By-Step Process

Step	Action	Deliverable
1) Intake And Scope	Review contract chain, trade flow, counterparties, and required instruments.	Initial feasibility and engagement scope.
2) Structural Mapping	Map primary LC, secondary LC, documentary dependencies, and timing.	Back-to-back structure blueprint.
3) Margin Assessment	Assess existing collateral and identify any margin gap.	Margin strategy and funding logic.
4) Package Build	Prepare credit-ready file, KYC package, and transaction memo.	Underwriting-ready submission pack.
5) Targeted Introductions	Introduce file to matched banks and specialist providers.	Indicative terms, clarifications, or written declines.
6) Credit And Compliance Review	Respond to underwriting questions and compliance checks.	Conditional approval path.
7) Legal Documentation	Support negotiation and execution sequence for issuance.	Finalized closing checklist.
8) Issuance Coordination	Coordinate final issuance workflow and post-issuance controls.	Executable transaction launch.

What To Submit For A Quote

Underlying contract set and full transaction summary.
Required LC type, amount, tenor, and beneficiary details.
Draft or sample LC wording, if available.
Margin position and current collateral availability.
Corporate documents, ownership details, and financials.
Shipment and logistics plan with documentary milestones.
KYC and AML package for all relevant parties.

Why Back-To-Back LC Files Fail

Contract terms and LC terms do not match. Banks reject inconsistent documentary obligations.
Margin shortfall has no real solution. Good trade logic alone does not replace collateral.
Document choreography is weak. One discrepancy can delay or block payment.
Compliance file is incomplete. KYC gaps stop underwriting momentum.
Timing assumptions are unrealistic. Credit and legal review need disciplined sequencing.

If you need back-to-back letter of credit issuance support for a commodity or commercial transaction, submit your file. We structure the deal, run bank introductions, and support execution through underwriting and documentation.