How SBLC Monetization Works in Practice

The monetization of an SBLC involves transferring it to a monetizer, who then issues a loan or credit facility based on its value. Once the SBLC is verified and authenticated through SWIFT messages (typically MT760), the monetizer uses their own banking network to create funds, often at a loan-to-value (LTV) ratio ranging between 60–90%. These funds are then made available to the SBLC owner or beneficiary. The process usually takes between 5 to 10 business days. This approach helps businesses unlock liquidity without selling assets or issuing equity, making it a powerful financial strategy when executed correctly.