Letter of Credit Services and Trade Finance Advisory
FG Capital Advisors | Letter of Credit Services

Secure the right letter of credit for your transaction.

We advise importers, exporters, commodity traders, manufacturers, distributors, contractors and sponsors on obtaining letters of credit from banks and other eligible trade finance providers.

Our work covers transaction structuring, credit preparation, LC wording, issuing-bank placement, collateral and margin requirements, confirmation, amendments, discounting and related working capital financing.

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MT700 Documentary Credits Commercial LC structuring and issuance preparation
Sight, Usance and UPAS Structures aligned with supplier payment terms and trade cycles
Issuance to Financing Margin, confirmation, discounting and post-shipment support
Container terminal representing international trade and letter of credit financing
The documentary credit must match the trade Supplier terms, shipment timing, documentary requirements, repayment tenor and the applicant's credit profile determine how the LC should be structured.
Letter of Credit Advisory

Support from initial structure through issuance and financing.

A documentary credit is part payment mechanism and part credit structure. The applicant, underlying contract, beneficiary, reimbursement source and bank requirements all have to work together.

01

LC Structuring

Determine the documentary credit structure that fits the commercial agreement and cash conversion cycle.

  • Sight versus usance
  • Payment timing
  • Shipment schedule
  • Beneficiary requirements
  • Document conditions
02

Issuing Bank Placement

Prepare eligible transactions for presentation to suitable banks and trade finance providers.

  • Issuer mapping
  • Bank eligibility
  • Credit preparation
  • Transaction presentation
  • Execution coordination
03

MT700 and Draft Review

Review draft wording before issuance to reduce avoidable documentary and commercial problems.

  • MT700 structure
  • Document requirements
  • Shipment provisions
  • Expiry terms
  • Commercial consistency
04

Margin and Collateral

Analyze the collateral and credit support required to establish issuance capacity.

  • Cash margin
  • Partial collateral
  • Pledged assets
  • Corporate credit
  • Margin financing
05

LC Confirmation

Support transactions where the beneficiary requires additional payment protection from a confirming bank.

  • Confirmation strategy
  • Issuer acceptability
  • Country risk
  • Advising banks
  • Confirmation pricing
06

Amendments and Extensions

Coordinate changes where the transaction evolves after issuance.

  • Amount increases
  • Expiry extensions
  • Shipment amendments
  • Document changes
  • Beneficiary changes
07

LC Discounting

Structure liquidity against eligible accepted, deferred-payment or usance documentary credit receivables.

  • Usance discounting
  • Deferred receivables
  • Accepted drafts
  • Forfaiting
  • Exporter liquidity
08

Pre-Shipment Finance

Evaluate funding requirements before production or shipment where the trade structure can support additional financing.

  • Supplier advances
  • Production finance
  • Inventory finance
  • Purchase order finance
  • Red clause structures
09

Post-Shipment Finance

Release working capital after shipment and before contractual payment is received.

  • Document purchase
  • Negotiation finance
  • Receivable discounting
  • Usance financing
  • Working capital release
Letter of Credit Types

Letter of credit structures we help clients secure.

The appropriate documentary credit depends on supplier terms, trade cycle, payment timing, applicant credit, intermediary structure and available collateral.

Documentary Letter of Credit / DLC Standard documentary credit supporting payment against complying trade documents, commonly issued using SWIFT MT700.
Import Letter of Credit Issued on behalf of the buyer in favor of a supplier.
Export Letter of Credit Documentary credit received by an exporter as payment support.
Sight Letter of Credit Payment is generally due after presentation and examination of complying documents.
Usance Letter of Credit Provides an agreed credit period before payment becomes due.
Deferred Payment Letter of Credit Provides payment at a specified future date without necessarily requiring a time draft.
UPAS Letter of Credit Usance Payable at Sight can provide sight payment to the supplier while the applicant receives deferred repayment terms.
Confirmed Letter of Credit A second bank adds its own payment undertaking to that of the issuing institution.
Unconfirmed Letter of Credit The beneficiary relies primarily on the issuing bank's undertaking.
Transferable Letter of Credit Allows an eligible first beneficiary to transfer the credit to one or more second beneficiaries.
Back-to-Back Letter of Credit Uses an incoming documentary credit as part of the support for a separate LC issued to an underlying supplier.
Revolving Letter of Credit Designed for recurring purchases where availability renews under agreed conditions.
Red Clause Letter of Credit May permit the beneficiary to receive an agreed advance before shipment.
Green Clause Letter of Credit Can provide pre-shipment advances linked to warehousing, inventory or specified documentary evidence.
Acceptance Letter of Credit A time draft may be accepted for payment at an agreed maturity.
Standby Letter of Credit A contingent payment undertaking generally used as credit or performance support rather than the ordinary settlement mechanism.
Cash-Backed Letter of Credit Supported by cash margin or pledged deposits acceptable to the issuing institution.
Facility-Backed Letter of Credit Issued under an approved working-capital, trade-finance or contingent-credit facility.
Structuring the Credit

Match payment mechanics to the underlying trade cycle.

LC selection usually comes down to when the supplier needs cash and when the applicant can economically reimburse the issuing side.

A sight credit can suit a supplier requiring prompt payment following shipment. A usance or deferred-payment structure can give the buyer additional time. UPAS can bridge the two by allowing sight payment to the supplier with deferred repayment by the applicant.

Transferable and back-to-back credits can support intermediary structures. Red clause and green clause credits may be relevant where the beneficiary requires funding before shipment.

Purchase Contract Goods, price, Incoterms, shipment obligations and payment terms should align with the documentary credit.
Applicant The issuing side evaluates financial capacity, reimbursement source and available security.
Beneficiary Supplier requirements determine acceptable issuer, tenor, confirmation and document provisions.
Documents Invoice, transport, inspection, origin, insurance and other documentary requirements have to be workable.
Repayment The bank needs a clear reimbursement source when the LC matures.

Need issuance capacity without 100% cash margin?

Full cash collateral is not the only possible structure. Depending on the applicant, issuer and transaction, alternatives may include partial cash margin, approved corporate credit, pledged financial assets, third-party credit support or a separately underwritten margin facility.

We can assess the collateral shortfall, prepare the underlying trade case and determine whether the transaction can be presented to suitable financing and issuance providers.

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Commercial Applications

Documentary credits across international trade.

Letters of credit are particularly useful when counterparties need bank-intermediated payment support rather than relying solely on open-account settlement.

Commodity Trading Agricultural products, metals, fuels, chemicals, food products and other documented commodity transactions.
Manufacturing Imported components, production inputs, machinery and finished goods.
Equipment and Machinery Capital equipment purchases involving staged shipment, inspection and deferred payment.
Wholesale and Distribution Recurring supplier purchases where revolving, transferable or usance credits may be relevant.
Construction and Infrastructure Procurement of equipment, machinery and materials for large commercial and infrastructure projects.
Cross-Border Supply Contracts Transactions where suppliers require bank-backed payment before accepting manufacturing or shipment risk.
Execution Process

From underlying contract to approved issuance.

STEP 01

Review

Review the applicant, beneficiary, contract, face amount, tenor, payment structure and requested wording.

STEP 02

Structure

Determine the appropriate LC type, margin, document conditions, confirmation requirements and repayment mechanics.

STEP 03

Prepare

Assemble corporate, financial, KYC, KYT and transaction information required for issuer review.

STEP 04

Place

Present eligible transactions to suitable institutions and coordinate documentation toward issuance.

Frequently Asked Questions

Letter of credit issuance and financing.

Can you help us obtain a documentary letter of credit?

Yes. We can review the underlying transaction, select an appropriate LC structure, prepare the applicant for underwriting and support placement with suitable institutions.

Can you help arrange an MT700?

MT700 is the principal SWIFT message used for the issuance of a documentary credit. We can structure and place eligible transactions requiring MT700 issuance, subject to independent bank underwriting and approval.

What is the difference between sight and usance LCs?

A sight LC generally provides payment following presentation and examination of complying documents. A usance or deferred-payment LC provides a future payment maturity.

What is a UPAS LC?

UPAS means Usance Payable at Sight. It can allow the beneficiary to receive sight payment while the applicant receives a deferred repayment period, subject to the participating financial institutions.

Can you help if we do not have 100% cash collateral?

Potentially. Collateral requirements depend on applicant credit, transaction quality and issuer policy. Partial margin, corporate credit, pledged assets or third-party support may be possible in certain transactions.

Can you help with transferable or back-to-back LCs?

Yes. These structures can be relevant where an intermediary sits between the ultimate buyer and supplier. The contracts, pricing, documentary requirements and bank terms have to be aligned carefully.

Can an LC be discounted?

Certain accepted, deferred-payment or usance LC receivables may be eligible for discounting or forfaiting. Availability depends on issuer quality, country risk, tenor and documentary status.

Do you guarantee issuance?

No. Issuance remains subject to independent credit, compliance, collateral, legal and transaction approval by the relevant issuing institution.

Need a letter of credit for an upcoming transaction?

Submit the applicant, beneficiary, LC face amount, currency, underlying contract, requested tenor, supplier requirements and available collateral. We will review the transaction and determine the appropriate advisory scope.

Request a Quote

Legal Notice. FG Capital Advisors provides paid trade finance advisory, structuring, underwriting preparation and placement services. We are not a bank, issuing institution or guarantor and do not independently issue letters of credit. Any documentary credit, confirmation, financing or collateral facility remains subject to independent KYC, KYT, AML, sanctions, credit, legal and collateral review by the relevant institution. No issuance or financing outcome is guaranteed.