Beyond SBLCs – Designing Alternative Capital Structures and Readiness Programs for Project Owners
Date: November 22, 2025
Introduction
Corporate advisors focus on readiness, not just SBLCs. By creating structured readiness programs, they make projects attractive to private equity, banks, and trade finance institutions, improving funding success rates.
1. Advisory Value Proposition: Readiness, Not Instruments
Investors care more about well-prepared projects than the availability of SBLCs. Advisors differentiate themselves from instrument brokers by ensuring projects are bankable and investment-ready.
2. Designing a Project Readiness Program
Readiness programs may include business model validation, sector benchmarking, regulatory mapping, ESG compliance, risk mitigation, and financial modeling. Projects receive a “bankability scorecard” with actionable improvement plans.
3. Integrating Trade Finance and SBLC Literacy
For trade-heavy sectors, advisors educate clients on letters of credit, SBLCs, guarantees, and supply-chain finance. Proper SBLC issuance is only done when justified by banking relationships and project readiness.
4. Capital Structure Engineering with Private Equity
Advisors design structures aligning with PE requirements: equity for growth, term debt for cash-flow projects, and guarantees or SBLCs only where needed. Additional instruments may include mezzanine finance or vendor financing.
5. Building and Leveraging Investor Networks
Curated networks of PE funds, family offices, DFIs, and banks ensure projects are matched with suitable investors. Trust and reduced friction in prepared projects shorten decision cycles.
6. Revenue Model and Borrower Alignment
Advisors typically charge retainers for readiness services and success-based fees for closed deals. Transparent fees and advisory-only engagement build credibility and distinguish serious advisors from SBLC facilitators.