A Standby Letter of Credit is a bank guarantee that protects the beneficiary if the applicant fails to pay or perform. Issued by a regulated bank and governed by ISP98 or UCP600, an SBLC is widely used in cross-border trade, construction, leasing, and project finance to reduce counterparty risk and keep deals moving.

How an SBLC Works?

Your bank issues an undertaking in favor of the beneficiary for a stated amount and expiry. If the applicant does not meet its obligation, the beneficiary presents the required documents to the issuing bank. Once the presentation complies, the bank pays. Formats include Financial SBLCs for monetary obligations and Performance SBLCs for delivery or completion obligations.

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Where an SBLC Adds Value

• International shipments where the seller needs certainty of payment
• Construction and EPC contracts that require performance security
• Rent, lease, and utility agreements that call for a standby guarantee
• Bid, advance payment, and warranty undertakings on large projects
• Project finance structures that rely on bank support to unlock milestones

Our SBLC Solutions

Mountaintop Capital Partners LLC arranges issuance, advising, and (when required) confirmation of SBLCs through Tier-1 and premier regional banks. We structure terms, select the governing rules, and manage SWIFT messaging end-to-end so counterparties receive the instrument correctly and on time.

What we handle for you:

• Term drafting that aligns with your contract and draw conditions
• Choice of ISP98 or UCP600, sight or usance, revolving or auto-extendable
• Issuance via authenticated SWIFT MT760 with pre-advice MT799 when needed
• Amendments, transfers, assignment of proceeds, and cancellations
• Coordination of confirmations to add a second bank’s credit when required

Eligibility and Documentation

Expect KYC and AML onboarding, corporate formation documents, audited or management financials, contract or pro-forma invoice, and beneficiary details. Depending on risk, banks may require cash margin, marketable collateral, or a credit facility.

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Process and Timeline

• Scope the need and size, define beneficiary, tenor, and rules
• Submit KYC package and transaction documents
• Receive terms and fees, execute the mandate and pay bank charges
• Bank issues SBLC by SWIFT and delivers originals if required
• Ongoing support for amendments, extension, or cancellation
• Typical issuance time is 5 to 12 business days after compliance approval.

Fees and Validity

Banks price SBLCs as an annualized percentage of the face amount plus issuance and SWIFT charges. Tenor commonly ranges from 3 to 24 months with options to extend.

Compliance First

All SBLCs are issued by regulated institutions and subject to KYC, AML, and sanctions screening. We do not participate in anonymous or unverifiable transactions. Full fee disclosure is provided before you commit.

Why Mountaintop Capital Partners?

• Wall Street trained team experienced in complex trade and project structures
• Direct access to Tier-1 banks for faster underwriting and clear terms
• Single point of contact from structuring to final SWIFT delivery
• 256-bit encrypted client portal and secure document workflow
• Post-issuance support for draws, extensions, and replacements