Lease or Purchase Strategic Standby Letters of Credit with Confidence
As a leading SBLC provider, AltFunds Global delivers reliable access to lease SBLC and purchase SBLC instruments that strengthen your credit profile and support global transactions.
What a SBLC Provider Can Do for You
If you’ve faced challenges such as:
- Verifying the authenticity of an SBLC
- Finding a credible SBLC provider or issuing bank
- Navigating complex compliance or collateral requirements
- Managing the high costs of issuing standby letters of credit
You’re in the right place.
At Alt-Funds Global, we specialize in facilitating high-value standby letters of credit for entrepreneurs, private entities, accredited investors, and institutional partners. Our streamlined process and global banking relationships give you a clear path to access capital without the uncertainty.
Benefits of Leasing or Purchasing a Standby Letter of Credit (SBLC)
Working with a trusted SBLC provider like Alt Funds Global gives your business a strategic advantage. Whether you choose to lease an SBLC or purchase an SBLC outright, the benefits are designed to support growth.
Key Benefits of SBLC Finance
- Financial security: Offer your counterparties assurance of payment, giving you stronger leverage in negotiations and smoother access to trade credit.
- Access to new markets: Demonstrate financial credibility and stability, helping you expand your operations and build trust with global partners.
- Risk mitigation: Protect both your company and the seller from default risk. SBLCs help ensure that performance and payment obligations are met.
- Flexibility: Most standby letters of credit can be customized to fit your transaction’s specific needs. That includes timing, terms, and delivery conditions.
Why Alt Funds Global?
As your strategic partner, AltFunds Global provides:
- Direct access to vetted issuing banks
- Personalized structuring options
- Legal and compliance support
- Transparent, performance-based fees
Book a consultation call to learn more about how we can help you achieve your business goals with an SBLC.
Benefits of Monetizing a Standby Letter of Credit (SBLC)
As a specialized SBLC provider, Alt Funds Global helps you convert a leased or purchased SBLC into usable capital both strategically and securely.
Why Monetize an SBLC?
- Quick Access to Cash Flow: Monetization provides immediate capital that can be used for business expansion, project financing, or other pressing needs.
- Leverage Without Liquidation: Access funds without selling off valuable assets. You’ll preserve ownership and operational stability while still raising capital.
- Custom Financing Options: Enjoy flexible terms tailored to your objectives, including repayment schedules and rates that align with your business strategy.
Book a consultation call today and let our team guide you through a secure, results-driven monetization process
Standby Letter of Credit Process Flow and Verification
When you need an SBLC, it’s essential to have a process flow that’s transparent and easy to follow. As a leading SBLC provider, Alt Funds Global ensures a streamlined experience from consultation to execution.
Here’s what to expect:
- Initial Consultation: We begin with a personalized call to understand your objectives, review financial capacity, and confirm eligibility for leasing or purchasing an SBLC.
- Client Onboarding: We gather required documentation and perform due diligence to ensure full compliance and alignment with your transaction goals.
- SBLC Structuring: Our team collaborates with issuing banks to structure the instrument based on your needs. This ensures terms, timelines, and coverage are aligned.
- Issuance & Delivery: Once finalized, the SBLC is issued via SWIFT MT760. We guide you through this phase, keeping you informed at every step.
- Optional Monetization: If desired, we can coordinate monetization through vetted, high-integrity channels, adding liquidity to your capital strategy.
At every step of the SBLC process, we keep you informed and updated, providing clear and concise communication. Trust us to handle your SBLC needs with professionalism and dedication, and let us help you achieve your financial goals.
Verifying the Authenticity of an SBLC
SBLC fraud is a known risk in this space. At AltFunds Global, our verification protocols go beyond surface-level checks and include:
- Confirmation of the issuing bank’s credentials
- Analysis of instrument language and structure
- Authentication of SWIFT message details
- Recommendations for third-party legal review or in-person due diligence, where needed
Essential Documentation for Us to Get Started with Your SBLC
To lease or purchase an SBLC through Alt Funds Global, the following documentation must be completed to ensure compliance and support a secure transaction process:
- AltFunds Global’s KYC (Know Your Client) Form: Along with a bank statement that is three days old, you’ll need to provide proof of funds of at least $1.5 million USD plus a 1% paymaster fee.
- Mutual Non-Disclosure Agreement and Non-Circumvent Agreement (NDA/NCA): These agreements must be signed and completed to ensure the confidentiality of the transaction and to prevent circumvention of the parties involved.
- Joint Venture Agreement: This agreement outlines the terms and conditions of the transaction and must be signed and completed by all parties involved.
Once all documentation is received and verified, either Alt Funds Global or one of our trusted law firms or dealer-broker partners will provide you with a formal Service Agreement. Upon signing, we’ll proceed with issuing your standby letter of credit.
SBLC Monetization
If you’re looking to access quick cash flow, monetizing an SBLC may be the solution you need. Our team is here to guide you through the SBLC monetization process, providing flexible financing options that can be customized to suit your business needs.
Client Requirements
To participate in our SBLC finance and monetization programs, clients must meet the following baseline criteria:
- Minimum of $1.6 million USD available for SWIFT and related legal fees
- Program entry typically begins with instruments valued at $250 million USD
- Selective availability for SBLCs as low as $20 million USD on a case-by-case basis
Compliance and Onboarding Sequence
Once you’re qualified and ready to proceed:
- Submit a signed Customer Information Sheet / Know Your Client (KYC) Form
- We initiate a compliance review and issue a retainer and service agreement via our licensed dealer-broker or law firm partners
- Upon execution, the monetization structure is finalized, and funding begins
Trust us to handle your SBLC monetization needs with the utmost care and attention to detail. Contact us today to learn more about how we can help you access the cash flow you need to grow your business.
SBLC Leasing and Purchasing Fees
At AltFunds Global, we believe in cost transparency and strive to provide our clients with competitive and reasonable fees. The cost of an SBLC can vary depending on different factors, including the issuing bank’s credit quality, the instrument’s language, and the number of days it takes to issue the instrument. Our fee structure is fair and reflects the value we provide to our clients.
Standard Fee Structure
- Leasing or Purchasing an SBLC: 2.5% of the instrument’s face value
- Monetization Services (Optional Add-On): Additional 2.5% of the instrument’s face value if we assist in monetization
Performance-Based Fee Structure
In cases where clients lack sufficient capital to cover issuance costs (typically between 4% and 62%, based on bank and instrument specifics), Alt Funds Global may front capital from our firm or financial partners. When this occurs:
- Our fee is 50% of the net proceeds from monetization
- This option is offered on a case-by-case basis only
- Please note: We do not block our own funds without formal engagement and underwriting
Programs Not Suitable For
To maintain service quality and compliance, we do not engage with:
- Clients who do not have at least $1.6 million USD for MT760-related fees
- Individuals or companies “price shopping” or requesting non-standard procedures
- Brokers without direct relationships with end clients
At AltFunds Global, we are committed to helping our clients achieve their financial goals by providing the highest level of service possible. We understand that every client’s needs are different, and our team is dedicated to finding the best solution for each unique situation.
Book a consultation call today to learn more about how our monetization services can benefit you.
Timelines
At AltFunds Global, we know that time is of the essence when executing a contract. That’s why we take pride in our efficient and speedy execution process, which typically takes only 1-3 banking days.
Standard Turnaround Times
- Initial Consultation to Document Submission: Within 1 to 2 business days
- SBLC Issuance (Post-KYC & Agreements): Typically 1 to 3 banking days
- Monetization (If Applicable): Timelines vary based on market liquidity, partner bank load, and transaction structure
Factors That May Extend Timelines
- Client location and time zone coordination
- Instrument size and issuing bank requirements
- Market congestion or queue with monetization partners
- Verification delays or incomplete documentation
Our team maintains open communication throughout the process, updating you at every step. Book a consultation call today to learn more about our execution process and how we can help you achieve your financial goals efficiently and effectively.
Legal & Compliance Statement
AltFunds Global GmbH is a Switzerland-based global advisory and consulting firm. We are not a bank, securities dealer, licensed lender, or financial institution under Swiss FINMA or any other jurisdiction. We do not offer or facilitate securities, public offerings, regulated financial products, or personalized investment advice.
Any communication, material, or engagement from AltFunds Global should not be construed as a solicitation to invest, a financial promotion, or a recommendation to engage in any specific transaction.
We work exclusively with sophisticated parties and accredited clients who meet our internal due diligence criteria. All services are subject to third-party provider terms, and outcomes are not guaranteed.
AltFunds Global strictly adheres to Swiss Anti-Money Laundering (AML) regulations, including the Swiss Anti-Money Laundering Act (AMLA), and adheres to internationally recognized KYC/AML protocols. We reserve the right to decline any applicant who does not meet our compliance standards or operates in restricted jurisdictions.
By engaging with AltFunds Global, you acknowledge that you have read and understood this disclaimer and are acting on your own initiative.
Frequently Asked Questions
What is the difference between a Standby Letter of Credit and a Letter of Guarantee?
These financial instruments are used to guarantee payment to the beneficiary in case the applicant defaults on their payment obligations. However, there are some essential differences between these two instruments.
If you are engaged in international trade, an SBLC may be more relevant to you. It is issued by a bank on behalf of its client, the applicant, to guarantee payment to the seller if the buyer fails to fulfill their contractual obligations. This means that the bank promises to pay the beneficiary if the applicant defaults on their payment obligations. The beneficiary can present the SBLC to the bank for payment if the applicant fails to make payment as agreed.
On the other hand, an LG is a more general term used to refer to any guarantee given by one party to another. It is a promise by one party (usually a bank) to be responsible for the obligations of its client (the applicant) to a third party (the beneficiary). LGs can be used in various situations, such as construction contracts, performance bonds, or customs and tax guarantees.
Overall, while both instruments provide a form of guarantee, an SBLC is more specific to international trade and payment obligations, while an LG can be used in various situations where a third party requires assurance that an obligation will be fulfilled. If you are still determining which instrument is appropriate for your situation, Book a consultation call with AltFunds Global today to learn more about our services and how we can help you achieve your financial goals.
How can I get a better understanding of what an SBLC is?
If you’re looking to understand better what a Standby Letter of Credit (SBLC) is and how it operates, numerous examples and PDFs are available online to guide you. A quick search on Google or any other search engine using the keywords “standby letter of credit example” or “standby letter of credit PDF” can provide you with a variety of resources, including articles, guides, and templates, that can help you delve deeper into this financial instrument.
If you prefer visual aids, you can also check out our YouTube channel which is a reliable source of accurate information on SBLCs. Our channel is filled with informative videos that can provide you with a clear understanding of how SBLCs work, their uses, and how you can benefit from them.
Where can I get more information about SBLCs from your organization?
To learn more about SBLCs from our organization, you can easily access our YouTube channel. Our channel provides informative and detailed videos to help you better understand SBLCs and how they work. You can also find various other helpful resources on our channel, including customer case studies and customer walkthroughs related to SBLCs. So, if you are looking for accurate and reliable information about SBLCs, be sure to check out our YouTube channel today.
Referral & Broker Program
If you’re a broker who works directly with business owners or institutional clients, our program offers generous commission structures for successful introductions.
For Standard Referrals
Earn 10% of AFG’s 2.5% face value fee for every successful client introduced
(or 5% for indirect/referral-based leads)
For Joint Venture Referrals
When a client enters into a 50/50 JV with AFG:
- Earn 10% of AFG’s 20% profit fee, or
- 5% for indirect introductions
Brokers are paid upon successful issuance or monetization, and we only work with introducers who maintain direct access to the client. Contact us to learn more about eligibility and onboarding.
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