BLC Guide: Authenticity, Issuance, Costs & Real Risks

✅ Complete SBLC Guide: Authenticity, Issuance, Real Costs & Scams

🔍 AUTHENTICITY & VERIFICATION

How do I know the SBLC is real?

A real SBLC exists only when issued via SWIFT (MT760) from a regulated bank to another bank. PDF "samples" or "drafts" mean nothing unless the SWIFT message is sent and authenticated.

Your bank (Bank A) confirms receiving MT760 from HSBC London. They verify the message through SWIFTNet. This means the SBLC is real.

How do I verify the issuing bank without being scammed?

Check if the bank is:

• Licensed
• Regulated in its jurisdiction
• Able to send SWIFT MT7xx series
• Listed on the SWIFT BIC directory

Provider claims SBLC from "XYZ Private Bank, Hong Kong." You search SWIFT BIC directory. No such bank exists → scam.

Why do so many deals feel fake?

Brokers outnumber real providers and circulate fake documents, Photoshop samples, and unrealistic LTV claims.

Red Flag: Broker offers 80% LTV monetization, no collateral required, 3-day delivery → 99% scam.

What documents prove authenticity?

Only:

• MT799 (pre-advice, optional)
• MT760 (actual SBLC issuance)
• Bank-to-bank RWA, BCL, or DOA

PDF formats do not prove issuance.

Client shows signed SBLC draft on bank letterhead. Your bank says no MT760 received → not authentic.

Can legitimate SBLC come from small/foreign banks?

Yes, if:

• The bank is regulated
• Has SWIFT BIC
• Has limits for issuing bank guarantees

Small Maltese bank issues SBLCs routinely for EU trade finance → legitimate.

How do I spot fraudulent providers quickly?

Red Flags:

• No compliance process
• No bank coordinates
• Gmail instead of corporate email
• Guarantees impossible LTV (60–90%)
• No proof of banking relationship

They ask for "processing fee" before KYC → scam.

📋 ISSUANCE PROCESS & REQUIREMENTS

How is SBLC actually issued?

1. Client submits KYC + business purpose
2. Bank reviews financials & collateral
3. Bank approves limit
4. Bank sends MT760 to beneficiary bank

You pledge property; bank approves SBLC limit; bank sends MT760.

What does bank need from me?

• Corporate KYC
• Audited financials
• Purpose of SBLC
• Collateral (cash, assets, credit line)

₹10 crore revenue business → bank approves 3 crore SBLC line.

Do I need collateral or proof of funds?

YES, ALWAYS. No bank issues SBLC "without collateral."

Manufacturing company uses warehouse inventory as collateral.

How long until MT760?

Typically 5–15 banking days after signing contracts & paying charges.

Document	Purpose
KYC pack	Identity verification
Corporate docs	Legal existence
Board resolution	Approval authority
Collateral proof	Security backing
Facility contract	Terms agreement

💰 COSTS, FEES & MONETIZATION

What does SBLC really cost?

Banks charge 6–12% annually of guarantee value + arrangement fees.

$10M SBLC at 7% = $700,000/year.

Realistic loan-to-value range?

Provider Type	LTV Range
Banks	20–50%
Regulated Firms	30–60%
Brokers claiming 80%+	SCAM

How quickly cash after MT760?

3–10 banking days after monetizer verification.

⚠️ RISK, LIABILITY & COMPLIANCE

Personal liability if called?

Yes if personal guarantees or assets pledged.

Bank pays immediately, then collects from YOUR collateral.

Red flags that kill deals?

• Inconsistent financials
• Shell companies
• No economic purpose
• Sanctioned jurisdictions

🎯 EXECUTION & BUSINESS USE

Use Case	Example
Secure loans	Bank collateral
Trade deals	Supplier guarantees
Tender bids	Government contracts
Performance bonds	Project completion

Learn how SBLC providers issue standby letters of credit and check client compliance.

Details here

Realistic SBLC → Cash timeline?

1. SBLC issued (MT760) → Day 10
2. Monetizer verifies → Day 12
3. LTV loan issued → Day 15
4. Funds transferred → Day 20

✅ KEY TAKEAWAY

Real SBLC = Regulated bank + MT760 + Collateral + 6-12% cost + 20-50% LTV

Anything else = High scam probability