LC Review
- Rules check under UCP600 or ISP98 and governing law
- Issuing bank, advising, and confirmer strength review
- Discrepancy risk and document conformity gap analysis
- Sanctions, jurisdiction, and KYC screening
Letter of Credit Discounting
We arrange discounting against clean, compliant Letters of Credit so you turn receivables into cash before maturity. Bank-grade screening, fast pricing, and controlled settlement.
We structure and place LC discounting with banks and private credit desks for confirmed or eligible unconfirmed LCs. Scope covers LC review, conformity checks under UCP600 or ISP98, drawee and confirmer analysis, pricing discovery, assignment or proceeds control, and settlement mechanics. You get advance cash on shipment or presentation, while the funder is repaid at LC maturity.
Scope of Services
Commercials
- Indicative discount rate and fee grid by tenor and bank risk
- With or without recourse options where feasible
- Advance rate, reserve, and proceeds waterfall
- Notice and assignment wording to secure payout
Execution
- Drafting of assignment or proceeds instructions
- Document presentation checklist to reduce discrepancies
- Settlement controls and account confirmations
- Ongoing reporting to maturity and reconciliation
Use Cases
- UPAS LCs and deferred payment LCs
- Confirmed LCs from investment grade banks
- Selected unconfirmed LCs where country risk is acceptable
- Back-to-back and transfer LC chains with clear flows
Structures We Arrange
- Discounting of confirmed LCs on a without recourse basis
- Discounting of eligible unconfirmed LCs with recourse
- UPAS LC settlement where sight reimbursement funds tenor
- Assignment of proceeds with advising or confirming bank notice
- Program lines for repeat shipments and revolving flows
Eligibility and Dossier
Minimums
- Single LC face value from USD 500,000
- Tenor up to 360 days subject to risk
- Top tier or acceptable issuing or confirming bank
Core Dossier
- Applicant and beneficiary KYC and ownership chart
- Copy of LC, amendments, swift messages, and advising details
- Draft transport and commercial documents for presentation
- Trade background, shipment schedule, and payment flow
Process
Intake
Mandate signed, KYC received, LC shared with all pages and swift trail. Target funding date agreed.
Terming
LC rules and bank risk checked. Indicative discount rate, fees, advance rate, and recourse position issued.
Docs
Assignment or proceeds control drafted. Presentation checklist finalized. Bank notices prepared.
Funding
Documents presented clean. Advance paid to beneficiary as agreed. Proceeds repaid at LC maturity to funder.
Reporting
Tracking to maturity. Reconciliation and release of any reserves. Close file.
Pricing Guidance
- Discount margin set by issuing or confirming bank risk and tenor
- Arrangement retainer sized to scope and timetable
- Success fee linked to funded advance at closing
- Bank, legal, and courier costs passed at cost
Final economics depend on bank grade, country risk, tenor, LC size, and control over proceeds.
Request an LC Discounting Proposal
Send the LC copy, swift trail, advising details, and shipment plan. We reply with eligibility, indicative rate, controls, and a fast path to funding.
Include beneficiary KYC, trade background, and whether the LC is confirmed. Indicate requested advance rate, expected presentation date, and preferred settlement account. We act as arranger and coordinate with funding partners.
All transactions are subject to KYC and AML, sanctions checks, document conformity, final approvals, and signed agreements. No offer of securities is made.
Financely acts as advisor and arranger. We are not a bank and do not take deposits. LC discounting depends on document compliance, bank acceptance, and counterparty performance. Nothing here is a guarantee of funding.