Notice. Advisory and arranging services only. We are not a bank or a guarantor. All outcomes depend on KYC/AML, issuer approvals, document quality, controls, collateral where applicable, and definitive documentation.
Letter of Credit Monetization & Discounting
We arrange monetization and discounting of Letters of Credit and Standby Letters of Credit. Our mandate covers structuring, underwriting, bank introductions, term negotiation, and closing. Structures can reach up to 100% LTV against eligible instruments, subject to issuer, terms, and approvals.
Open Client IntakeOn This Page
Scope Of Services
Structuring & Underwriting
- Instrument review and compliance with UCP600, ISP98, or URDG758
- Credit assessment of issuer and confirming banks
- Assignment of proceeds, discount, or forfaiting pathway
Bank Introductions & Terms
- Shortlist of discounting banks and funds by jurisdiction
- Pricing, tenors, confirmations, recourse vs non-recourse
- Account control, escrow, and settlement mechanics
Closing & Monitoring
- Diligence file, conditions precedent, legal opinions
- Drawdown scheduling, delivery and presentation checklists
- Amendments, substitutions, and extension processes
Use Cases And Rules
Eligible Instruments
- Documentary Letters of Credit (sight or usance)
- Standby Letters of Credit with compliant wording
- L/Cs with added or silent confirmation where required
- Avalized drafts or accepted bills in specific cases
Governing Rules
- UCP600 for documentary L/Cs
- ISP98 for standbys
- URDG758 for demand guarantees where applicable
- Incoterms 2020 alignment for trade document sets
Wording quality, issuer rating, and confirmation status drive LTV, pricing, and recourse.
Eligibility And Data Room
Baseline Profile
- Active operating company with verifiable trade or contract
- Original, irrevocable L/C or SBLC issued by a recognized bank
- Clear draw conditions and compliant presentation route
- Beneficiary rights to assign proceeds where needed
Core Documents
- Full copy of instrument, SWIFT MT7xx, and any amendments
- Underlying contract, invoice set, and logistics plan
- Confirmation or add-confirmation preferences
- KYC pack, financials, and board authorizations
Checklist issued at intake. Execution starts when core items are complete.
Products And Indicative Terms
| Sight LC Discounting | Immediate funding at presentation. LTV up to 100% for top-tier issuers and confirmed instruments. Fees deducted at settlement. |
| Usance LC Discounting | Discount to maturity against accepted draft. Recourse or non-recourse subject to issuer, confirmer, and terms. |
| SBLC Monetization | Assignment or advance against compliant standby wording. Tenor aligned to expiry; early termination mechanics agreed. |
| Forfaiting | True sale of receivable evidenced by L/C or avalized bill. Off-balance sheet treatment where applicable. |
| Confirmations | Added confirmation to elevate issuer risk profile and improve LTV and pricing. |
| Facility Size | USD 2m to USD 500m per transaction or revolving line, subject to approvals. |
| Pricing | Discount rate over reference plus fees. Arrangement fee at close. Third-party costs pass through. |
| Security & Controls | Account control, assignment of proceeds, escrow, and delivery checklists per rules and Incoterms. |
| Documentation | Assignment agreements, confirmations, purchase or discount agreements, legal opinions, insurance where relevant, CP schedule. |
Illustrative only. Final terms are set by the discounting bank after underwriting and approvals.
Execution Approach
Workstreams
- Instrument screening and wording alignment
- Shortlist of funders and indication of terms
- Diligence, approvals, and documentation
- Presentation, funding, and settlement
Risk Controls
- SWIFT verification and document examination checklists
- Account control and escrow where required
- Tripwires for amendments, extensions, or discrepancies
Send the L/C or SBLC text and amendments, confirmation status, and the underlying contract. We will revert with a route to discounting or monetization and conditions to close.
Open Client IntakeFAQ
Do you fund L/Cs directly?
No. We act as an advisor and arranger. Funding and discounting are performed by regulated banks and approved counterparties.
Is 100% LTV always available?
It depends on issuer quality, confirmation, wording, and terms. Some transactions qualify for up to 100% LTV. Others clear at lower advance rates.
Which rules apply?
UCP600 for documentary L/Cs, ISP98 for standbys, and URDG758 for demand guarantees where used. Incoterms 2020 govern trade documents.
Recourse or non-recourse?
Both exist. Availability depends on issuer risk, confirmation, and structure. Pricing reflects the chosen recourse profile.
How fast can this close?
Cycle time tracks document readiness, confirmation, and approvals. A complete pack shortens underwriting and settlement.
What fees apply?
Arrangement retainer and success fee at closing. Funder fees, confirmation costs, counsel, and courier or SWIFT charges are paid by the client.
Disclosures. FG Capital Advisors provides advisory and arranging services. No guarantee of approvals, pricing, timing, capacity, or specific LTV. All proposals are subject to eligibility, documentation quality, counterparty and issuer approvals, and controls.
