Professional Services. Page prepared September 2025. FG Capital Advisors acts as arranger and advisor via regulated partners.
Letter Of Credit Issuance For Eligible Transactions
We arrange the issuance of Letters of Credit for qualified buyers and exporters, subject to full underwriting and documentation. Structures include Usance LCs, Documentary LCs, and Standby LCs under UCP 600 or ISP98, with optional confirmation and discounting.
What We Arrange
Issuing bank mandates, advising and confirming bank selection, LC text drafting, document alignment, and post-acceptance discounting where applicable.
Types Of LCs
Usance LC with deferred payment and discounting, Documentary LC (DLC) payable at sight or term, Standby LC (SLOC/SBLC) for performance or financial standby purposes.
Who It Fits
Corporates and traders with repeat trade lanes, defined shipment windows, and auditable controls. Transactions in metals, energy, and agri with clear title and insured cargo.
Client Pain Points
Buyer credibility questioned, sellers demand bank risk not buyer risk, shipment delays from LC refusals, cash trapped in long DSO cycles, pricing penalties due to weak documentation.
How We Solve It
Bank-issued payment undertakings, clean document presentation standards, optional confirmation to neutralize country or bank risk, and discounting to accelerate working capital.
Controls That Matter
Assignment of proceeds, escrow waterfalls, collateral management at port or warehouse, insured shipments, and eligibility rules that align with lender requirements.
| Underwriting And Eligibility Criteria | ||
|---|---|---|
| Dimension | What We Require | Outcome |
| Counterparty Profile | KYC files, sanctions and AML screens, buyer and seller credit packs, historical trade performance | Sets confirmation appetite and tenor limits |
| Transaction Evidence | Sales contracts, POs, Incoterms, shipment plan, draft LC text, inspection and insurance terms | Reduces risk of refusal and improves pricing |
| Collateral And Title | Title alignment through B/L, warehouse receipts, CMA where relevant, loss-payee endorsements | Supports discounting and secondary risk mitigation |
| Cash Flow Mechanics | Assignment of proceeds, confirming bank payment flows, controlled collections | Improves recoveries and settlement certainty |
| Reporting | Document checklists, presentation timelines, discrepancy cure windows | Faster draws and fewer disputes |
| LC Structures Compared | |||
|---|---|---|---|
| Type | Use Case | Tenor | Key Notes |
| Usance LC | Deferred payment to exporter, with discounting post-acceptance | 30 to 180 days, deal-dependent | Priced on tenor, bank, and corridor, enables working capital relief |
| Documentary LC (DLC) | Payment at sight or term against compliant presentation | Sight or short term | Classic trade instrument under UCP 600, reduces counterparty risk |
| Standby LC (SLOC/SBLC) | Performance or financial standby, secondary payment support | Up to 12 months, renewable | Issued under ISP98 or UCP 600, used for bid, performance, or payment support |
| Typical Cost Drivers | ||
|---|---|---|
| Item | Driver | Comment |
| Issuance Fee | Applicant profile, amount, tenor, corridor | Quoted by issuing bank after underwriting |
| Confirmation Fee | Country risk, issuing bank risk, LC tenor | Set by confirming bank, can be passed to buyer or seller |
| Discount Margin | Usance tenor, confirming bank, currency | Applies post-acceptance on deferred LCs |
| Swift and Handling | Amendments, notices, courier | Operational, often overlooked, cumulative |
Execution Timeline
Request LC Issuance For Your Next Shipment
Submit your pro forma LC text, contracts, and shipment plan. We align terms with UCP 600 or ISP98, secure issuing and confirming banks, and arrange discounting where needed. All mandates are subject to underwriting and final bank approval.
Start Your LC RequestDisclaimer. FG Capital Advisors is an arranger and advisor. Final issuance, confirmation, and discount terms are set by the relevant banks following diligence and credit approval. Documentation quality and control mechanics drive appetite, pricing, and capacity.
