Back-to-Back Letter of Credit Issuance for Commodity Traders

Financely arranges back-to-back letters of credit for commodity traders who sit between a supplier and an end buyer.

When your buyer’s bank issues a master LC in your favour, we work with a rated issuing bank to open a second credit to your supplier, secured by that master LC. You can then close the trade without tying up your own working capital.

We review the master LC and the sale contracts, set the documentary terms so both credits line up, and manage the process through issuance. The cost is set out before we start, with a one-off retainer paid to us and a flat issuance charge paid to the bank.