Professional Services. Page prepared September 2025. FG Capital Advisors acts as arranger and advisor via regulated partners.
Letters of Credit for SMEs: Secure Export & Import Payments
We arrange LC issuance, confirmation, and discounting so your shipments move and cash lands when documents are clean. Terms follow UCP 600 and match your Incoterms. We fix wording, remove traps, and align banks so exporters get certainty and importers get workable presentation rules.
Who It Suits
SME importers and exporters with confirmed orders that want bank-backed payment security on cross-border shipments.
What You Get
LC issuance support, confirmations with rated banks, LC discounting at shipment, and document checklists that cut discrepancies.
Core Terms
Sight, usance, or deferred LCs. Standby LCs for performance or payment support. Typical ticket USD 0.5–20 million. Confirmation and discount pricing set by bank risk and tenor.
Eligibility
Signed sales contract or PO, clear shipment terms, workable LC draft, and KYC on buyer and seller. Existing banking relationship is helpful but not required.
Risk Controls
Clean presentation rules, confirmed banks where country risk is high, reimbursement undertakings, and escrow options for edge cases.
Offer Snapshot
Scope
- Coordinate LC issuance text, availability, and reimbursement with issuing and advising banks.
- Arrange confirmations where buyer or country risk requires it.
- Set discounting or forfaiting at shipment for faster cash.
- Prepare document pack templates to reduce discrepancies.
Timeline
- T+1 to T+2 weeks: Intake, KYC, LC draft review, and bank alignment.
- T+3 to T+4 weeks: Final wording, confirmations, and issuance.
- T+4 to T+6 weeks: First presentation, discounting, and settlement as applicable.
What We Need To Start
Documents
- Sales contract or pro forma with Incoterms and shipment window.
- Draft LC text or application, beneficiary details, and bank contacts.
- Commercial invoice, packing list, and draft transport plan.
Deal Inputs
- Requested amount, tenor, and availability (sight or usance).
- Need for confirmation or discounting and target banks if any.
- Country risks, sanctions screens, and any compliance constraints.
Key Questions
How do fees work
Flat structuring retainer. Success fee on confirmed or discounted amounts at issuance or funding. Bank fees are charged by the banks directly.
Which rules apply
UCP 600 for documentary credits, ISP98 for standby LCs if requested. We align text with these rules to avoid ambiguity.
What causes discrepancies
Mismatched dates, transport terms, or document wording. We supply checklists and sample wording to keep presentations clean.
What we do not do
We do not issue LCs or guarantee payments. We arrange with banks and manage documentation so your deal closes cleanly.
Start Your LC Engagement
Send your contract and draft LC text. We will confirm scope, bank options, and a path to issuance and confirmation.
Start NowDisclaimer. FG Capital Advisors provides advisory and arrangement services. LC issuance, confirmation, and discounting terms are set by banks after diligence and compliance checks.
