SBLC And LC Issuance Advisory For Corporates

Notice. This page is informational and general in nature. SBLCs and LCs are issued by regulated banks subject to underwriting, KYC and AML, sanctions screening, and approved documentation. Obtain independent legal advice on contract wording and enforceability.

SBLC And LC Issuance Advisory

If your counterparty, landlord, utility, or project contract requires a bank instrument, the outcome you need is simple: wording accepted, issuing bank approved, collateral plan credible, and issuance delivered on time.

FG Capital Advisors arranges SBLC issuance, documentary letter of credit (LC) issuance, and renewals or replacements of existing instruments. We package the underwriting file, coordinate wording, and run the bank process end to end on a best-efforts advisory basis.

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What We Arrange

  • SBLC issuance under ISP98 or UCP 600 where applicable.
  • Documentary LC issuance(often called DLC or LC) under UCP 600 for trade settlement.
  • Renewal and extension for expiring SBLCs and LCs.
  • Replacement and refinancing to change issuer, restructure collateral, or optimise terms.
  • Amendments to amount, tenor, wording, or beneficiary requirements.

Outcomes Clients Typically Want

  • Instrument wording that the beneficiary accepts without last-minute disputes.
  • A collateral plan that aligns with bank policy and closes cleanly.
  • Fewer underwriting loops through a complete, lender-ready pack.
  • Clear process ownership, timelines, and execution discipline.

Common Use Cases

  • Performance security, tender obligations, and contract guarantees for projects.
  • Advance payment security and supplier credit support in trade flows.
  • Lease, landlord, and utility security requirements.
  • Counterparty risk support where a standby instrument is required to unlock delivery or terms.
  • Trade settlement where a documentary LC is required for payment against documents.

How The Arrangement Process Works

  • Eligibility screen: confirm the correct instrument, rule set, and feasibility based on the underlying obligation.
  • Underwriting pack: financials, corporate documents, KYC, underlying contract, and a clear collateral narrative.
  • Wording coordination: align beneficiary draft requirements with bank-issuable language and draw mechanics.
  • Bank process: submission, Q&A, conditions precedent, approvals, and issuance delivery through standard channels.
  • Post-issuance support: amendments, renewals, replacement issuance, and facility optimisation where applicable.

We are not a bank and do not issue instruments. We coordinate issuance through regulated banking counterparties. We are not a law firm and do not provide legal advice.

FAQ

Is this a genuine corporate service?

Yes. SBLCs and documentary letters of credit are widely used to support trade and contractual obligations. The bank issues the instrument. Our role is to arrange the issuance process, structure the file for underwriting, and coordinate delivery.

What does “refinancing” an SBLC or LC mean?

It typically means replacement issuance, renewal, extension, or collateral substitution. The objective is to keep the obligation covered while improving bank acceptability, cost, or collateral efficiency where feasible.

Can you issue an SBLC or DLC on our behalf?

A regulated bank issues. We act as advisor and arranger, manage the bank process, and coordinate documentation and wording on a best-efforts basis.

What collateral is typically required?

Requirements vary by applicant credit, instrument type, tenor, jurisdiction, and bank policy. Common approaches include cash margin, secured facilities, or approved third-party support structures. We scope collateral options based on feasibility and bank acceptability.

How long does issuance take?

Timing depends on data readiness, KYC and AML, sanctions screening, credit review, and wording finalisation. The fastest outcomes occur when the underlying contract, beneficiary wording, and collateral plan are complete at intake.

Do you guarantee issuance?

No. Issuance is subject to bank underwriting and approvals. We control process quality, packaging, and coordination to improve execution probability and speed.

If you need an SBLC or documentary LC for a live obligation, share the beneficiary wording requirement and the underlying contract. We will revert with feasibility, scope, and the intake list required to proceed.

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Disclosure. 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. Any support is provided on a best-efforts advisory basis and remains subject to third-party diligence, approvals, and documentation.