Important Disclosure. For corporate sponsors and professional counterparties. Engagements are subject to eligibility screening, KYC and AML, sanctions checks, and written engagement terms. FG Capital Advisors provides services covering structuring advisory and execution coordination and does not act as an issuing bank. No issuance, pricing, confirmation, or collateral outcome is guaranteed.
Standby Letter of Credit (SBLC) Services
FG Capital Advisors provides SBLC services for corporates: structure definition, underwriting file preparation, rule-set and wording coordination under ISP98 or UCP 600, issuer and confirmer workstreams, and disciplined documentation through delivery. Where margin is required, we advise on collateral strategy and, where feasible, coordinate pathways to raise or source the required margin through suitable third parties. All outcomes remain subject to issuing bank policy and approvals.
Mandate Focus
SBLC issuance path design, confirmation strategy where required, collateral and margin planning, and closing support through bank documentation and operational controls.
Working Standards
Rule-set alignment (ISP98 or UCP 600), SWIFT delivery coordination (including MT760), and a bank-grade underwriting narrative that can survive credit and compliance review.
For the practical cost and collateral reality, see SBLCs: Cost, Collateral and How Sponsors Raise Margin and SBLC and LC Issuance With Margin Solutions.
Collateral Reality: Policy Drives Margin
Some issuers require full backing
Many banks require 100% cash collateral or near-cash collateral for most applicants. In these cases, the key variable is not persuasion. It is whether the sponsor can post eligible collateral and clear underwriting cleanly.
Some issuers consider partial security
Certain banks may consider partially secured SBLCs for qualified sponsors, typically inside an approved credit line and subject to strict policy limits. Approval depends on credit strength, transparency, transaction clarity, and control mechanics.
For SBLC use cases and rule-set basics, see Standby Letters of Credit (SBLC) and Standby Letter of Credit Services.
Who We Serve
Typical Sponsor Profile
- Post-revenue corporates with documented contracts, clear counterparties, and defined performance or payment obligations.
- Sponsors able to support margin or collateral through cash, eligible securities, or a documented funding plan.
- Management teams prepared to deliver lender-grade materials and respond to bank diligence on schedule.
Common SBLC Use Cases
- Performance and warranty support for engineering, construction, and infrastructure contracts.
- Advance payment protection and supplier performance support in procurement and manufacturing.
- Payment support for commodities, offtake, and supply contracts where counterparties require bank risk.
- Credit support for commercial arrangements where bank-grade assurance is mandated.
If the obligation is trade documentary rather than standby, see SBLC, DLC and Usance LC Issuance.
Full-Scope Services
1. Scoping and Eligibility
Define SBLC type, amount, tenor, renewal mechanics, beneficiary conditions, and governing rules. Identify constraints early, including policy fit, jurisdictional issues, and documentary triggers that drive margin.
2. Underwriting File Preparation
Assemble and quality-control a bank-ready package: corporate documents, financials, underlying contract support, counterparty details, and a coherent risk narrative aligned to issuance and confirmation requirements.
3. Wording and Rule-Set Alignment
Coordinate drafting and redlines under ISP98 or UCP 600 to match the underlying obligation and beneficiary expectations, with practical presentation mechanics, expiry, place of presentation, and amendment controls.
4. Issuer and Confirmer Coordination
Where confirmation is required, structure the confirmation approach and manage execution across issuing and confirming institutions, including timeline control and SWIFT deliverability.
5. Collateral and Margin Strategy
Advise on collateral pathways consistent with issuing bank credit policy. Where feasible, coordinate margin sourcing or capital raising routes to meet the required margin, subject to counterparty acceptance and approvals.
6. Documentation and Closing Support
Manage the closing workstream through approvals and documentation, coordinating with counsel and bank operations, and supporting issuance delivery via SWIFT messaging (including MT760) when conditions are satisfied.
Related execution pages: Underwriting and Placement Agent and Trade Finance Structuring and Fundraising.
Engagement Parameters
What We Provide
- Structuring advisory and bank-ready execution management.
- Placement support on a best-efforts basis through suitable banking and regulated counterparties.
- Process control, drafting coordination, and diligence management from scoping to delivery.
What We Do Not Provide
- No guaranteed approvals, issuance, confirmation, or margin outcome.
- No circumvention of bank policy, KYC, AML, sanctions controls, or documentation requirements.
- No work on undocumented transactions or counterparties that cannot clear diligence.
Request SBLC Services Scope and Commercial Terms
Submit your transaction details to receive a scoped plan, eligibility feedback, and next-step requirements for issuance and confirmation.
Request a QuoteDisclaimer. Information provided is general and does not constitute legal, tax, or investment advice. Any SBLC structure is subject to issuing and confirming bank policy, credit approval, KYC and AML, sanctions screening, definitive documentation, collateral onboarding, and operational acceptance. FG Capital Advisors provides services on a best-efforts basis and may work with regulated partners where required.
