Notice. This page is informational and general in nature. All transactions remain subject to KYC and AML, sanctions screening, counterparty acceptability, collateral validation, definitive documentation, and issuing bank approvals. FG Capital Advisors is not a bank or lender and does not issue instruments. We do not accept client money. No issuance, pricing, or timeline is guaranteed.
Letter of Credit Services
When a supplier, beneficiary, or contracting authority requires a bank instrument and you do not have clean issuing capacity, deals stall. Timelines slip, counterparties lose confidence, and procurement windows close. Banks do not “work with” incomplete files. They decline them.
The outcome you want is straightforward: an instrument that matches the contract, a document set that can be presented in real life, and an issuing bank that is comfortable with the applicant, the beneficiary, the goods, and the corridor.
FG Capital Advisors provides full scope letter of credit services. We package transactions to bank standards, introduce issuing banks aligned to the instrument and jurisdiction, and coordinate issuance, amendments, and draw mechanics across trade and performance obligations.
Request a ProposalWhat You Get
This service is designed for operating businesses that require instruments to execute commercial transactions and either (1) do not have established issuing lines, (2) need incremental headroom beyond existing bank limits, or (3) need a structured capital plan to support issuance.
- Trade instruments. Import payment, export settlement, supplier support, repeat shipment programs.
- Performance instruments. Tendering, mobilization, performance and warranty obligations.
- Guarantee issuance support. Bid, performance, advance payment, retention, and maintenance regimes.
Related internal pages: Trade Finance for SMEs , Structured Trade Finance Advisory Services , and Commodity Trader Capital Raising and LC Issuance Support.
Clear 4-Step Procedure
The workflow is designed to produce bank decisions and clean issuance execution. The objective is written outcomes: issued instrument, or a documented decline with reason codes that can be addressed.
| Step | What Happens | Deliverable |
|---|---|---|
| 1) Deal Packaging | Transaction mapped to bank standards: contract logic, Incoterms, document set, beneficiary requirements, and rule set selection. | Transaction brief, document logic map, instrument selection, and KYC and AML pack requirements. |
| 2) Structuring and Credit Support | Issuance path designed around margin, collateral, and control mechanics. When margin is the constraint, a parallel credit support plan is coordinated. | Margin and collateral plan, draft instrument parameters, and a credit support outline where required. |
| 3) Issuing Bank Introduction | Targeted introductions to issuing banks aligned to geography, beneficiary, instrument type, tenor, and collateral profile. Q&A is managed through a single channel. | Submission package, Q&A log, condition tracker, and indicative terms comparison. |
| 4) Issuance and Lifecycle Management | Issuance coordination, amendments, extensions, and draw scenario planning. Presentation logic aligns to the governing rules and underlying contract. | Issuance coordination support, amendment support, and draw readiness guidance. |
Instruments Supported
| Category | Instrument Types | Typical Use |
|---|---|---|
| Documentary Letters of Credit | Sight LC, usance LC, deferred payment LC, acceptance LC, revolving LC, transferable LC, back-to-back LC, red clause LC, green clause LC, confirmed LC, UPAS LC (where supported) | Import settlement, export receivables support, structured payment terms, repeat shipment programs |
| Standby Letters of Credit | Financial SBLC, performance SBLC, advance payment SBLC, bid SBLC, lease and rental SBLC, customs and duty SBLC | Credit support, payment security, contract performance support, non-trade obligations where standby format is preferred |
| Demand Guarantees and Performance Instruments | Bid bond, performance guarantee, advance payment guarantee (APG), retention guarantee, warranty guarantee, maintenance guarantee | EPC and contracting, procurement frameworks, infrastructure works, OEM performance and warranty regimes |
| Guarantee Programs | Single issuance or repeat programs tied to a framework agreement, subject to issuing bank approvals | Multi-project execution, repeat beneficiaries, portfolio-level instrument needs |
For supplier prepayment structures, see: SBLC and APG Prepayments for Suppliers.
Regions Covered
Support is provided across major commercial corridors, subject to issuing bank risk appetite, beneficiary acceptability, and sanctions compliance.
- Europe and UK. EU and UK counterparties, EUR and GBP settlements.
- Middle East and GCC. Trading hubs, procurement and EPC frameworks, energy and industrial supply chains.
- Africa. Import and export flows, project procurement, structured commodity movements.
- Asia-Pacific. Manufacturing supply chains, repeat shipment programs, multi-origin sourcing.
- North America. Import and distribution programs, contractor guarantee needs.
- Latin America. Export flows, industrial inputs, agri and soft commodity corridors.
Related internal pages: Trade Credit Financing and Trade Finance Consulting.
Goods and Commodities Supported
Support covers a wide range of tradeable goods where contracts, documents, and controls are clear, and where counterparties are acceptable to issuing bank compliance standards.
- Energy. Crude and refined products, middle distillates, fuel oils, lubricants, petrochemical feedstocks.
- Metals and minerals. Concentrates, cathodes, alloys, industrial metals, bulk minerals, value-added metal products.
- Agriculture and softs. Grains, oilseeds, sugar, coffee, cocoa, cotton, edible oils, animal feeds.
- Fertilizers and industrial chemicals. Subject to documentation, licensing where required, and compliance acceptability.
- Industrial goods. Construction materials, equipment, spare parts, packaging, components, finished goods.
If the structure requires third-party control and inspection, see: Collateral Management Agreements in Trade Finance.
Transaction Eligibility Criteria
Issuance is a credit decision. The screening is designed to avoid late-cycle surprises.
- Commercial purpose. Trade, procurement, contracting, or performance obligations supported by enforceable documents.
- Bank-acceptable counterparties. Applicant, beneficiary, and key intermediaries pass KYC and AML, and sanctions screening.
- Bankable contract terms. Clear delivery and acceptance, dispute regime, governing law, and payment triggers.
- Document logic that works. Presentations that can be satisfied operationally without contradictions.
- Financial capacity. Ability to support margin, collateral, or a documented credit support plan.
- Transparent corporate profile. UBO disclosure, governance documents, and clean transaction rationale.
If incremental liquidity is required to support issuance capacity, see: Trade Finance Bridge Loans.
When Issuing Capacity Is the Constraint
Many operating businesses have real contracts and real revenues but lack issuing lines. Others have a bank, but capacity is capped due to limits, collateral constraints, beneficiary concentration, or peak-season volume. The mandate is to package the transaction to underwriting standards, introduce execution-capable issuing banks aligned to the file, and coordinate the path from indicative terms to issued instruments.
Where cash margin is the binding constraint, a parallel credit support path may be required, subject to approvals, so issuance is not blocked by a single balance sheet constraint.
FAQ
Do you issue letters of credit or guarantees?
No. Issuance decisions are made by banks and regulated counterparties under their own credit approvals and compliance standards. Support covers packaging, issuing bank introductions, and the issuance workflow.
Do you support performance instruments and guarantees?
Yes. Support includes trade LCs and SBLCs plus bid bonds, performance guarantees, advance payment guarantees, retention guarantees, and maintenance or warranty regimes, subject to acceptability.
What rules govern LCs and guarantees?
Documentary LCs commonly follow ICC UCP 600. Standby instruments often align to ISP98. Demand guarantees commonly align to URDG 758.
Can support be provided if full cash margin cannot be posted?
Sometimes. It depends on applicant strength, beneficiary profile, instrument type, and what collateral or credit support is feasible. When margin is the constraint, issuance usually requires tighter controls, a different instrument design, or additional credit support.
Do you guarantee issuance, pricing, or timing?
No. Support is best-efforts and subject to diligence, compliance screening, definitive documentation, and issuing bank approvals.
Request a proposal for letter of credit services. Include instrument type, face amount, applicant and beneficiary details, contract terms, Incoterms, shipment or performance schedule, and preferred issuing region. A structured path to issuance will be provided based on bankability and approvals.
Request a ProposalDisclosure. This content is for informational purposes and does not constitute legal, tax, accounting, or financial advice. FG Capital Advisors is not a bank or lender and does not issue instruments or accept client money. Any support is provided on a best-efforts basis and remains subject to third-party approvals, diligence, compliance checks, and definitive documentation. No issuance, funding, pricing, or timeline is guaranteed.
