Stand-by Letters of Credit (SBLC) Financing

How to Obtain the Money Today Using Future Funding

Do you have plans for expanding your business with contracts to deliver as much of your product as you can make, but not enough cash to build that facilities needed to manufacture them?

Have you entered into an agreement to sell goods or services? You secure a lucrative contract, but you need money from the order and can't wait several years for them to pay you.

Now you have a way to access those funds. It is a way that very, very few members of the financing community even know exists. We fund against stand-by letters of credit (SBLC) and irrevocable letters of credit (LOC).

Bear in mind that other forms of financing require you to have a stake in the deal. For example, construction projects. You'll have to produce detailed schedules and plans with most lenders. Not so here. What's more, we take your unconditional contract in lieu of "skin in the game." Your credit worthiness, net worth, and current financials do not play a part in the approval criteria. Instead, we look at the person or entity paying on the collateralized paper.

The low-down is that we can buy as much of your qualified (investment grade) paper as you want to sell.

Financing From SBLC

Reasons For Using This Type Of Funding:

1. Ease of Close

2. Flexibility of structuring (deferred payments, repayment start date, etc)

3. SPEED of funding (two weeks or less typically)

4. NO SURPRISES

5. NO up front fees

6. No other fees (such as renewal fees, underwriting, or closing)

7. NO Equity to give away

Other Financial Instruments that May Be Used as Collateral

Don't have a Letter Of Credit, but have something else you'd like to borrow against? An unconditional contract, bond, irrevocable letter of credit, CD, or other assignable instrument with measurable value can be used as collateral.  All instruments used as collateral must be unconditional, ("take or pay"), and of investment grade, assignable to a third party. The collateral must fall under U.S. law jurisdiction, meaning that the bank must have a US affiliate branch.  The grade of the collateral is based on the guarantor who is responsible for the cash flow, not to you. In fact, primary consideration for the approval for funding is the credit worthiness of the business entity that is responsible for paying on the instrument.

• CD's- Grade is evaluated by the bank that is holding the CD

• Mutual Funds- Grade is evaluated by the bank that is holding the CD

• Unconditional contracts to purchase goods- Grade is evaluated by the purchaser of the goods.

• Unconditional bonds- Grade is evaluated by the issuer of the bond.

• Unconditional retirement package- Grade is evaluated by the entity paying the retirement benefits.

• Annuities- Grade is evaluated by the entity paying out or holding the annuity.

• Tax Credits- Grade is evaluated by the entity issuing the tax credit.

Loan Amounts

Loan amounts from $10 million and greater are ideal for this loan program.

Our Private Placement Program offers an alternative to SBLC Financing.

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