Answers before the first call.
Straight answers on instruments, process and the firm. If your question is not here, a consultant will answer it directly.
Instruments
What is a Letter of Credit?
A Letter of Credit is a bank's undertaking to pay a seller once documents that comply with the credit's terms are presented. It is the standard way to secure payment in international trade between parties without an established relationship. Finance House arranges LCs through A-rated partner banks such as Barclays, J.P. Morgan and HSBC.
What is a Standby Letter of Credit?
A Standby Letter of Credit is a bank guarantee in letter of credit form. It pays the beneficiary only if the applicant fails to meet an obligation, which makes it suitable as security for contracts, credit support for financing, and collateral for monetization.
What is a Bank Guarantee?
A Bank Guarantee is a bank's promise to pay a fixed sum if its client fails to fulfil a contract. Forms include bid, performance, advance payment and payment guarantees. Finance House arranges guarantees through A-rated partner banks under ICC URDG 758.
What is the difference between an LC and an SBLC?
A documentary LC is designed to be drawn as the normal method of payment for goods, against shipping documents. A standby is designed not to be drawn; it is security that pays only on default. The right choice depends on what the counterparty needs the instrument to do.
Can a Standby Letter of Credit be monetized?
Yes. Standbys issued through A-rated banks can be monetized for up to approximately 80% of face value through established financial channels. Finance House reviews eligibility, structures the instrument accordingly and coordinates the process with the monetizing institution.
Process and costs
How long does issuance take?
It depends on the instrument and the issuing bank. Once the file is complete, straightforward instruments are often issued within days, while confirmed or complex structures take longer. We give a realistic timeline at the first consultation.
What documents will you need from us?
Typically company registration documents, identification for directors and owners, the underlying contract or tender, details of the beneficiary and its bank, and recent financials where the bank requires them.
What are the costs?
Costs consist of the issuing bank's charges and Finance House's advisory fee, both explained in writing before you commit. There are no undisclosed charges.
About Finance House
Is Finance House a bank?
No. Finance House for Banking Consultant is an advisory firm. Instruments are issued by A-rated partner banks following their own review; we structure the transaction, prepare the file and manage the process on your behalf.
Which banks issue the instruments?
Instruments are issued through A-rated partner institutions including Barclays, J.P. Morgan and HSBC. The issuing bank for a given transaction depends on the instrument, the beneficiary's requirements and the jurisdictions involved.
Where is Finance House located?
Our office is at Single Business Tower, Office 1103, Dubai, United Arab Emirates. We serve clients worldwide and can be reached on +971 4 393 5354.
How do we start?
Request a consultation through the contact page or call the Dubai office. Share the transaction, counterparty and timeline, and a consultant will come back with a recommended structure.
Discuss your transaction with a consultant.
Tell us about the deal, the counterparty and the timeline. We will come back with the instrument and structure we recommend.