SBLC, DLC & Usance LC Issuance | Margin Raised & LC Issued | FG Capital Advisors

Notice. Advisory and arranging services only. We are not a bank or a guarantor. All outcomes are subject to KYC/AML, issuer and confirmer approvals, collateral and controls, document quality, and definitive documentation through regulated partners.

SBLC, DLC & Usance LC Issuance For Qualified Buyers

We raise the required margin and arrange issuance with rated banks so your supplier is paid at sight and your company repays us on an agreed schedule. Structures include Standby Letters of Credit, Documentary Letters of Credit, and Usance LCs with confirmation where required.

Request a proposal. Commercial terms are determined after underwriting and approvals. Third-party costs are pass-through.

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Scope Of Services

Margin Raising & Underwriting

  • Applicant credit analysis and security package design
  • Margin financing mandate and draft term sheet
  • Cash control, assignment of proceeds, escrow mechanics

Issuance & Bank Syndication

  • Issuing bank selection and confirming bank options
  • LC text drafting compliant with UCP600 and deal specifics
  • Confirmation terms, country limits, shipment framework

Closing & Oversight

  • Conditions precedent, approvals, legal opinions
  • Presentation checklist and discrepancy management
  • Amendments, extensions, renewal cadence
Supplier certainty. At-sight settlement with added or silent confirmation when required.
Buyer cashflow. Usance or UPAS mechanics align repayment with collections and inventory turns.
Controls. Account control, escrow, delivery conditions, and clear document routes.

Structures And Use Cases

Structures

  • SBLC (ISP98/URDG758). Performance, advance payment, or financial standby with scheduled repayment to the financing provider.
  • DLC (UCP600). Sight or usance documentary LC with nominated or confirming bank.
  • Usance LC with UPAS. Supplier paid at sight. Applicant repays at maturity to us or the financing bank.

Representative Use Cases

  • Commodity imports requiring confirmation to release cargo
  • Industrial equipment and capex with staged shipments
  • Rolling monthly shipments under a master supply contract
  • Sponsors seeking extended terms without upfront cash margin

Final structure is determined by issuer appetite, confirmation needs, tenor, country limits, collateral, and compliance review.

Eligibility And Data Room

Baseline Profile

  • Operating company with audited or reviewed financials
  • Defined supply contract and shipment schedule
  • Board approvals for facility, security, and guarantees where applicable
  • Sanctions clearance and acceptable compliance posture

Core Documents

  • Draft LC text, pro forma invoice, logistics plan
  • Corporate KYC and latest financial statements
  • Supplier coordinates and confirmation preference
  • Collateral package, intercreditor requirements, insurance

Checklist is issued at intake. Underwriting commences when core items are complete.

Indicative Parameters

Facility Size Programmatic issuance with scalable limits, subject to approvals and risk appetite.
Tenor 60 to 360 days for usance. Longer case by case with confirmation and controls.
Margin Financing Structured as a secured facility with pledged accounts and assignments. Commercial terms communicated in the proposal.
Repayment Bullet at maturity or scheduled amortization aligned to receivable collections.
Security & Controls Account control or escrow, assignment of proceeds, delivery conditions, and document examination standards.
Documentation Facility agreement, LC terms, confirmations, legal opinions, CP schedule, operating procedures.

Illustrative only. Final terms are set by issuing and confirming banks and the margin financing provider following underwriting.

Execution Approach

Workstreams

  • Underwriting and term sheet for margin financing
  • LC text design and issuer engagement
  • Confirmation route and conditions to close
  • Diligence, approvals, documentation
  • Issuance, presentation readiness, monitoring

Risk Controls

  • SWIFT verification and document examination standards
  • Account control and escrow where required
  • Tripwires for amendments, extensions, discrepancies

Send the draft LC text, supplier details, desired tenor, shipment plan, and confirmation preference. We will respond with an issuance and financing route and the conditions to close.

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FAQ

Do you issue letters of credit yourselves?

No. We act as advisor and arranger. Letters of credit are issued by regulated banks. Confirmations are provided by approved banks.

How does margin financing work?

We underwrite the applicant and structure a secured margin facility. The facility funds issuance requirements. The applicant repays per the agreed schedule. Commercial terms are provided in the proposal.

Is confirmation mandatory?

It depends on issuer rating, country risk, tenor, and supplier requirements. Confirmation can improve acceptance and shipment timing.

Which costs should a buyer expect?

Cost components vary by structure, tenor, and bank selection. A full breakdown is included in the proposal after underwriting.

How quickly can issuance be completed?

With a complete pack and pre-agreed text, issuance is scheduled on the bank calendar. Timelines depend on approvals and compliance checks.

Disclosures. FG Capital Advisors provides advisory and arranging services through regulated partners. No guarantee of approvals, timing, issuance, pricing, or capacity. All proposals are subject to eligibility, documentation quality, counterparty approvals, and controls.