Information presented here is general in nature and does not constitute an offer to arrange or purchase any security. Facilities are available only to corporate clients with verifiable trade flows and a minimum ticket of USD 1 million, subject to KYC, AML and sanctions screening.
Letter of Credit Origination: DLC, SBLC, UPAS
Supply contracts tighten when counterparties insist on bank-backed payment guarantees. FG Capital Advisors structures documentary letters of credit (DLCs), standby letters of credit (SBLCs) and usance LCs from USD 1 million upward, unlocking working capital and securing cargo releases worldwide. We operate as an independent investment-banking adviser—engineering LC text, lining up issuing and confirming banks, and arranging discounting or bridge lines so clients never stall shipments while cash is trapped in transit.
Guide Navigation
LC Instruments We Arrange
| Instrument | Core Use-Case | Key Features |
|---|---|---|
| Documentary Letter of Credit (DLC) — Sight | Immediate payment upon compliant documents | UCP 600 governed · Available by sight draft · Issuing & confirming bank risk |
| Documentary LC — Usance | Buyer draws credit terms of 30–180 days | Deferred-payment undertaking · Option to discount with confirming bank |
| Standby Letter of Credit (SBLC) | Performance or payment back-stop | ISP 98 or UCP 600 · Claim on simple demand plus default statement |
| Back-to-Back / Transferable LC | Trader mirrors buyer LC to supplier | Pass-through credit; avoids balance-sheet exposure |
| Confirmed LC with Post-Financing | Supplier seeks bank risk while buyer needs tenor | We add confirmation and arrange discounting at shipment |
Why FG Capital Advisors
- Multi-bank reach. Live limits with 30+ tier-one and specialist trade-finance banks; we match geography, tenor and commodity appetite in-house.
- Structuring depth. LC wording aligned to Incoterms, inspection certificates and UCP 600—avoiding costly amendments at port.
- Funding bridge. For usance LCs we pre-place discounting or a bridge loan so suppliers receive sight funds while buyers enjoy extended credit.
- Velocity. Indicative term sheet in 48 hours; draft LC text in five business days; issuance or confirmation inside ten.
- True independence. No captive balance sheet—our mandate is to extract best-fit pricing from the market every time.
End-to-End Process
- Brief & Pre-Screen (2–3 days) – Review contract, counterparty names, shipment schedule and Incoterms.
- Structuring (3–5 days) – Propose LC instrument, issuing/confirming bank shortlist, collateral and margin if required.
- Term-Sheet & Mandate (≈1 week) – Client signs mandate; retainer or refundable commitment deposit lodged.
- Drafting & Compliance (Week 2) – Final LC wording; complete KYC/AML; sanctions and insurance review.
- Issuance / Confirmation (Week 3) – Issuing bank releases LC; confirming bank adds its undertaking; SWIFT MT 700/760 shared.
- Post-Financing (Optional) – Usance drafts discounted or bridge line funded at shipment.
Commercial Terms & Fees
| Parameter | Range / Guidance |
|---|---|
| Minimum Transaction Size | USD 1 million equivalent |
| Issuance Fee | 0.80–1.75 % flat (credit & tenor driven) |
| Confirmation Fee | 0.70–1.50 % flat |
| Usance Discount Margin | SOFR + 350–550 bps (USD) · Euribor + 300–500 bps (EUR) |
| Arrangement Fee | 1.0–1.5 % of LC face value |
| Collateral / Margin | 0–20 % cash or SBLC, case-by-case |
| Governing Rules | UCP 600, ISP 98 or URDG 758 |
Required Documentation
- Audited financials (two years) plus latest management accounts
- Final or pro-forma purchase contract / pro-forma invoice
- Corporate KYC pack (certificate of incorporation, bylaws, shareholder register, director IDs)
- Cargo insurance wording (where applicable)
- Draft LC preferences (Incoterms, latest shipment date, presentation period)
Start the Mandate
Need a Sight DLC for copper cathodes, a standby LC for an EPC contract, or 180-day usance terms on fuel oil? FG Capital Advisors designs the LC, secures confirmation, and lines up discounting before cargo hits the jetty. Email contact@fgcapitaladvisors.com with your draft contract and shipment schedule—our senior trade-finance desk will revert within two business days.
