Instruments built for cross-border business.
Four ways to secure payment, performance and liquidity, each issued by an A-rated bank and structured around your contract.
Letters of Credit
A documentary Letter of Credit commits the issuing bank to pay the seller once the documents named in the credit are presented in order. It replaces counterparty risk with bank risk on both sides of a cross-border sale.
- Import and export of goods and commodities
- First transactions with a new supplier or buyer
- Sales into markets with payment or transfer risk
Standby Letters of Credit
A Standby Letter of Credit is a bank's promise to pay the beneficiary if the applicant does not meet an obligation. It sits behind a contract as security and is drawn only on default, which makes it a flexible tool for performance, payment and financing needs.
- Security for supply, lease and construction contracts
- Credit support for financing facilities
- Collateral that can be monetized for working capital
Bank Guarantees
A Bank Guarantee is the issuing bank's commitment to pay a fixed sum if the applicant fails to fulfil a contract. It lets a company bid for and deliver large projects without tying up cash as a deposit.
- Tender, performance and advance payment guarantees
- Customs and regulatory guarantees
- Rent and payment guarantees for commercial leases
SBLC Monetization
Monetization converts an existing or newly issued SBLC into cash or a credit line. Finance House structures the instrument so that it meets the monetizing bank's requirements, then manages the process from verification to funding.
- Working capital without selling assets
- Bridging finance for trade and projects
- Leverage on instruments already held
Structured in Dubai. Issued into any market.
Instruments arranged here reach counterparties across the Gulf, Africa, Asia and Europe through the SWIFT network of our partner banks.
Which instrument fits?
A short comparison to start the conversation. Your consultant will confirm the right structure for the transaction.
| Instrument | LC | SBLC | BG |
|---|---|---|---|
| Purpose | Pays the seller for goods shipped, against documents | Secures an obligation and pays only on default | Compensates a beneficiary if a contract is not fulfilled |
| Paid when | Compliant documents are presented | The applicant fails to perform | The beneficiary makes a compliant demand |
| Typical users | Importers and exporters | Contractors, lessees, borrowers | Bidders, contractors, tenants |
| Governing rules | UCP 600 | ISP98 or UCP 600 | URDG 758 |
SBLC monetization is a service applied to an issued standby rather than a separate instrument. See the dedicated page for details.
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.