UPAS (Usance LC) Issuance & Refinancing Advisory

Advisory and arrangement for UPAS structures where the supplier is paid at sight and the applicant repays at tenor. We coordinate issuing and confirming banks, structure reimbursement and funding, align wording under UCP 600, and price the deferred leg at sight levels plus a clear carry.

We arrange new UPAS letters of credit and refinance existing usance LCs so buyers access supplier sight terms while retaining working capital for 30 to 360 days. Our work covers issuer selection, confirmation and funding lines, reimbursement mechanics, and document standards to reduce discrepancies. We model all-in cost by currency and tenor, set control accounts, and, where needed, hedge FX and benchmark resets to keep economics tight through maturity.

Scope of Advisory

UPAS Mechanics

  • Issuance under UCP 600 with UPAS clause and reimbursement terms
  • Supplier paid at sight by the confirmer; applicant repays at tenor
  • Funding via confirming bank or syndicate; reimbursement to NOD/NTP
  • URR 725 reimbursement where applicable and agreed

Issuers & Confirmers

  • Issuer mapping by country risk, limits, and trade corridor
  • Confirmation availability and pricing by currency and tenor
  • Silent or disclosed confirmation depending on counterparty
  • Amendments managed via MT707; reimbursements via MT740/742

Refinancing & Roll

  • Take-out of existing usance LCs into UPAS at sight pricing
  • Term extensions subject to tests and available limits
  • Switching currency and benchmark with matched hedging
  • Staggered maturities for rolling shipment calendars

Controls & Documents

  • Incoterms alignment and clean document set to cut discrepancy risk
  • Assignment of proceeds, controlled accounts, and cash dominion where needed
  • Sanctions, KYC, and adverse media screening across all parties
  • Audit trail for drafts, amendments, and presentations

Sectors and Flows

  • Energy: refined products, LNG, LPG
  • Metals: copper, aluminum, zinc, steel
  • Agri softs: sugar, grains, coffee, cocoa
  • Chemicals and industrial inputs
  • Cross-border trade across the US, Europe, LATAM, Africa, and Asia

Eligibility and Dossier

Minimums

  • LC face amount from USD 5,000,000
  • Named supplier and shipment plan or call-off schedule
  • Defined tenor, currency, and jurisdictions

Core Dossier

  • Applicant KYC and ownership disclosure
  • Financial profile and liquidity overview
  • Draft LC wording or beneficiary template
  • FX hedge approach and reimbursement source

Process

Onboarding

Mandate and KYC. Corridor, currency, tenor, and Incoterms confirmed. Issuer and confirmer short list prepared with initial terms.

Structuring

UPAS clause and reimbursement mechanics drafted under UCP 600. Presentation standards agreed. Confirmation and funding path validated.

Issuance

Compliance and credit cleared. MT700/710 issued; MT707 for amendments as required. Supplier receives sight proceeds on compliant presentation.

Monitoring & Repayment

Tenor, covenants, and FX hedges monitored to maturity. Applicant reimburses per schedule; roll or refinance assessed if needed.

Pricing Guidance

  • Sight fees for issuance and confirmation by bank and country
  • Deferred leg priced at benchmark plus margin for tenor carried
  • Reimbursement, amendment, and confirmation costs disclosed upfront
  • Advisory and arrangement via retainer plus success-linked fee

Final terms depend on corridor risk, currency, tenor, document quality, and bank limits.

Request a UPAS Quote

Send your trade dossier. We respond with issuer and confirmer options, pricing, and timeline.

Provide counterparties, shipment calendars, Incoterms, currency, tenor, and any draft LC wording. Indicate whether you need a fresh UPAS issuance or refinance of existing usance LCs.

Request Term Sheet How It Works

Arranged through licensed banks and subject to AML, KYC, sanctions, and credit approval. No commitment to lend until final approval and documentation.

Financely acts as advisor and arranger. We are not a bank and do not take deposits. Instruments are issued by regulated counterparties under UCP 600 and applicable reimbursement rules. All transactions are subject to due diligence, credit approval, and final documentation.