Leased Standby Letters of Credit, Letter of Credit,
Bank Guarantee

For a leased Stand-By-Letter Of Credit (SBLC), Letter of Credit (LOC), Bank Guarantee (BG) or any other creditworthy bank issued instrument, in the amount of $1 million to $500 million, we prefer to use TD Bank, USBC, Wells Fargo, JP Morgan Chase, (at our option) and we charge 10-14% gross (points and interest combined- not including intermediary fees) for one year and one day (the usual term). We can also consider any other major bank domiciled in the US. If you prefer a secondary or tertiary bank, or an overseas bank, there will be an additional 2% to 4% in costs, depending on the bank that is selected.

To generate an offer, we need to know all of the following:

  1. What face amount of the leased SBLC/BG are you requesting?
  2. For what period of time? (Standard is a year and a day; it can be renewable)
  3. Where will the SBLC reside?
  4. Do you have a sample SBLC preferred? (not required)
  5. Do you have a draft letter to go along with the SBLC? (not required)
  6. When does this need to close? (We routinely take 10 business days from receive of legal deposit)
  7. Any other specifics?

Once we receive the SBLC request including all of the above information, we issue our Term Sheet which lists all terms, costs and fees. If the Term Sheet is acceptable, we require a $5,000 legal retainer to execute and close this type of transaction.

Deposit

A $5,000 one-time deposit is required for the legal fees to prepare the transaction documents/closing documents, as well as to pay for any transaction costs and filing fees that might be incurred. Wire instructions are to be provided.

 

We prefer NOT to use SWIFTS and other traditional banking transaction procedures which are unnecessarily costly. However, we can use these procedure for additional fees.