Products/Services
SBLC Financing
A Stand-By Letter of Credit (SBLC) is an assurance that your company has the financial resources to perform as agreed under contract. The issuing Bank essentially substitutes its credit standing for that of your company in order to facilitate the contract. Stand-By letters of Credit are legal documents that support contractual agreements between two parties. The standbys are concerned only with the contractual agreement you have made with another party and are payable only when the appropriate documentation as outlined in the letter of credit is presented by the beneficiary. If the customer defaults, the beneficiary may draw funds against the letter of credit as penalties or as payments, whichever the terms of the credit provide.
The leased bank instruments we offer can be callable, irrevocable, assigned and transferable. In essence, no matter what your circumstance, our leased bank instruments can accommodate your needs
STAND-BY LETTER OF CREDIT PROGRAM SUMMARY
REAL PROPERTY STAND-BY LETTER OF CREDIT FINANCING PROGRAM
- Purchase of Standby Letter of Credit (SBLC) generally at a $20,000,000 face value. SBLC has a term of one year plus one day (see below for SBLC Purchase Program features).
- Transfer SBLC to Lender, together with 15 yr interest only Note, interest rate of LIBOR +2%.
- Lender funds up to 95% of face value of SBLC ($19,000,000), less 10% of face value in fees (all fees included), so borrower receives 85% of face value of SBLC.
Clients can use Stand-by Letters of Credit for many reasons such as:
- Leverage Funding for Large Commercial Projects
- Funding a Trading Platform
- Credit Enhancement
- Blocked Funds
- Qualify for Financing
- Net Worth Requirements
- Providing Evidence of Proof of Funds
- Commodities / Petroleum Transactions
- To provide assurances of our Client's ability to perform under the terms of a contract
- To fulfill bid-bond and performance-bond requirements
- To help secure third-party financing