Back-to-Back SBLC & DLC Contract Financing

We act as arranger for back-to-back Standby and Documentary Letters of Credit. Issuer and confirmer selection, wording alignment, collateral and margin mechanics, and SWIFT execution under UCP 600 or ISP98.

We structure supply contract funding where a buyer LC or SBLC supports a mirrored instrument to upstream suppliers. The incoming LC anchors the risk. We document controls, set reimbursement and presentation standards, and coordinate confirmations so goods ship and payments clear on time. Our role is to deliver a workable chain: buyer LC in, supplier LC or SBLC out, funds flow monitored to completion.

Scope of Service

Instruments

  • Incoming DLC or SBLC from buyer with confirmation where needed
  • Outgoing supplier LC, UPAS LC, or SBLC backstopped by the incoming instrument
  • Discounting or reimbursement lines for sight payment
  • MT700 issuance, MT760 standby, and MT707 amendments

Structure & Controls

  • Mirror wording to pass through documentary risk
  • Assignment of proceeds and controlled accounts
  • Incoterms, document set, and presentation standards
  • Sanctions, KYC, and counterparty screening

Collateral & Margin

  • Cash margin where required by issuing bank
  • Eligibility and concentration limits on counterparties
  • Warehouse receipts and collateral manager options
  • Ring-fenced proceeds with cash dominion

Execution & Monitoring

  • Issuer and confirmer mapping by country and tenor
  • Wording alignment to minimise discrepancies
  • Shipment calendar tracking and draw management
  • Collections, reimbursements, and covenant checks

Indicative Mini Term Sheet

  • Facility: Back-to-back LC program supported by incoming buyer LC or SBLC
  • Purpose: Fund supplier shipments against confirmed orders
  • Instrument: MT700 DLC or MT760 SBLC, with MT707 amendments as required
  • Tenor: Up to 360 days, case by case
  • Size: From USD 5,000,000 per program
  • Advance: Up to 90% of eligible invoice value subject to controls
  • Pricing: Benchmark plus margin for discounting or reimbursement lines
  • Fees: Issuance and confirmation by bank tariff; arranger retainer USD 50,000 to 100,000; success-linked arrangement fee at close
  • Collateral: Assignment of proceeds, controlled accounts, WRs where applicable
  • Conditions Precedent: Executed contracts, shipment plan, KYC, sanctions, and acceptable draft wording
  • Covenants: Compliance reporting, concentration caps, and permitted jurisdictions
  • Governing Rules: UCP 600 for DLC, ISP98 for SBLC

Eligibility and Dossier

Minimums

  • Program from USD 5,000,000
  • Named buyers and suppliers with track record
  • Visible shipment calendar and Incoterms

Core Dossier

  • Corporate KYC and ownership
  • Master contracts, POs, and invoices
  • Draft LC wording or acceptance criteria
  • Collateral plan and control mechanics

Process

Scoping

Mandate and KYC. Buyers, suppliers, flows, and jurisdictions mapped against bank appetite.

Underwriting

Credit and documentary checks. Draft wording prepared. Controls and confirmations aligned.

Placement

Issuers and confirmers approached by country and tenor. Terms refined through Q and A to decision.

Closing & Monitoring

Issuance completed. Shipments, presentations, and reimbursements tracked to maturity.

Pricing Guidance

  • Arranger retainer USD 50,000 to 100,000 at mandate
  • Success-linked arrangement fee on close
  • Bank issuance and confirmation priced by tariff, country, and tenor
  • Discounting or reimbursement margin over benchmark plus fees and reserves

Final economics reflect tenor, jurisdictions, counterparty risk, collateral quality, and confirmation path.

Request a Back-to-Back LC Proposal

Share buyers, suppliers, shipment plan, and target instruments. We return issuer options, controls, and a credible timetable.

Include draft wording or acceptance criteria, Incoterms, payment terms, and needed confirmations. Indicate DLC, SBLC, or UPAS structure.

Contact Us See Our Services

Facilities are issued by licensed banks under UCP 600 or ISP98 and remain subject to KYC, AML, sanctions, and credit approval.

Financely acts as arranger. We are not a bank and do not take deposits. Nothing here is a commitment to lend or a guarantee of issuance.