Important Disclosure. For corporate sponsors and accredited investors. Not a public offer. Local restrictions may apply. Prepared September 2025.
SBLC & APG Prepayments for Suppliers
We arrange supplier prepayments secured by Standby Letters of Credit (SBLC) or Advance Payment Guarantees (APG), paired with inspection, title and accounts control. If production needs funding before shipment, we combine this with Purchase Order Financing so you can buy inputs, run the line and load on time. Minimum aggregate facility size: USD 10,000,000. We don’t fund directly—banks and programs provide capital while we run structure and execution.
Who We Serve
Suppliers to Rated Buyers
Export or domestic suppliers with firm POs or framework contracts to investment-grade or bank-confirmed buyers.
OEMs & Contract Manufacturers
Need working capital before shipment; cash is trapped in WIP and inventory until LC/acceptance.
Commodity Sellers
Prepayments tied to inspection and title transition, with clean logistics and clear Incoterms.
When SBLC/APG Prepayment Beats the Alternatives
Buyer Needs Better Terms
Discount for early cash without crushing your own liquidity. Bank “paper” adds comfort.
Production Gap
Blend with Purchase Order Financing to cover inputs and labor until shipment.
Currency or Country Risk
Use confirmation or cash collateral to lift risk, then control proceeds through assigned accounts.
Collateral Light
Rely on bank guarantees, title wording, inspection and control—no heavy real estate pledges.
How the Structure Works
Instrument
Buyer issues SBLC/APG via acceptable bank. Optional confirmation by a top-tier bank or insurer wrap.
Controls
Inspection schedule, title transfer wording, warehouse receipts or tank receipts, controlled accounts, assignment of proceeds.
Funds Flow
Prepayment released to supplier against conditions: inspection passed, documents matched, control perfected.
PO Financing Add-On
POF line advances against eligible POs to cover raw materials/WIP; repaid from prepayment or LC proceeds.
Documentation and Controls
Core Docs
Purchase orders, sales contracts, LC/SBLC/APG draft, inspection scope, WR/tank receipts (if applicable), insurance by Incoterm, KYC & sanctions checks.
Control Stack
Title wording, LOIs from terminals/warehouses, notice to buyer, assignment of proceeds, controlled accounts, inspection cadence, events of default and stop-flow rights.
Commercial LCs follow UCP 600. Standbys follow ISP98. Reimbursement may follow URR 725. All parties, vessels and routes pass KYC/AML/sanctions screening.
Indicative Economics
| Facility | Size | Tenor | Key Terms | Borrower Cost |
|---|---|---|---|---|
| SBLC/APG Prepayment | USD 10M–75M | 90–360d | Bank paper, inspection, title control, assigned proceeds | Benchmark + 4.0–7.0% + fees |
| Purchase Order Financing | USD 5M–40M | 30–150d | Eligible POs, supplier covenants, inventory/WIP reporting | Benchmark + 5.0–8.5% + fees |
| LC Confirmation (optional) | USD 10M–100M | Up to 180d usance | Confirming bank risk, country bands apply | Margin + confirmation fee |
Pricing depends on buyer credit, bank paper quality, tenor, inspection scope, controls and jurisdiction. Third-party costs and bank charges are separate.
Execution Process
Typical timing 8–14 weeks to first draw if documents and inspections are ready. New bank onboarding or complex control builds can extend the schedule.
Why Sponsors Hire Us
Bankable Paper
We draft SBLC/APG wording banks accept, plus clean confirmation routes when needed.
Hard Controls
Title, inspection, warehouse or terminal LOIs, and assigned proceeds—no loose ends.
PO Financing Combo
One workflow that funds production, secures prepayment and protects settlement.
Straight Talk
If it won’t clear credit, you get a fix list and the data room structure to try again.
Request SBLC/APG Prepayment & Purchase Order Financing
Send your POs or contracts, buyer bank details and shipment plan. We’ll respond with scope, a control checklist and a call slot.
Open Client IntakeFAQs
Do you fund directly?
No. We arrange and advise. Banks, funds and programs provide capital.
Minimum size?
USD 10,000,000 aggregate. Smaller only if part of a larger program.
Can we use Purchase Order Financing only?
Yes, if PO quality and buyer risk meet criteria. Prepayment still reduces friction.
Which banks confirm?
Depends on country/bank risk. We route to confirmers active on your corridor.
What drives pricing most?
Buyer credit, bank paper quality, tenor, control strength, inspection scope and route risk.
Upfront costs?
Our retainer plus third-party costs: KYC, inspections, insurance, legal and bank charges.
Disclaimer. All facilities are subject to KYC/AML, sanctions screening, underwriting, collateral verification and documentation. No guarantee of funding. Terms can change after diligence.
