Back-to-Back LC Feasibility Advisory | Financely
Assess whether a buyer LC can support a supplier credit. Financely reviews documentary mismatches, timing, bank requirements and reimbursement gaps.
Check whether your buyer’s LC can support the supplier leg
Your buyer offers a documentary credit, while your supplier needs a separate payment undertaking. Financely assesses the proposed two-credit structure before you commit to shipment dates or supplier terms.
For trading companies with an identifiable buyer credit, a supplier contract and a documented commercial margin between the two legs.
What you receive
Compare the two transaction legs
Map amounts, currencies, shipment windows, presentation periods and document requirements. Identify differences that could prevent timely presentation under the buyer’s credit.
Build the bank discussion pack
Set out the proposed reimbursement flow, residual funding gap and security requirements. Prepare the information needed for the bank to consider a back-to-back or alternative structure.
We assess the proposed transaction within our documentary credit financing services, including how document discrepancies affect back-to-back LC finance.
What to send us
Buyer LC or draft, supplier contract, resale contract, goods specifications, document samples, shipment schedule and current bank facilities.
Does receiving a buyer LC automatically give us supplier credit?
No. The issuing bank must approve its separate exposure, the incoming LC, the applicant and the proposed security. A buyer LC is not an automatic substitute for a credit line.
Request a scoped proposal
Send the buyer LC and supplier payment requirements. We will scope a review of the mismatches, funding exposure and available structure.
Your proposal sets out the deliverables, fees and next steps. Work starts after the engagement is signed and the retainer is paid.
Request a back-to-back LC reviewFinancely provides paid advisory and arranging services. Financing is provided by third-party institutions, subject to their independent review and approval. Funding and completion dates are not guaranteed.