Bank instruments & monetization
We deal with three (3) types of Bank Guarantee/ Stand by Letter of Credit Monetization settlement methods that is accepted in the market, our expert offer Bank to Bank and we have common expression for different types of instruments used for different financial solutions and purposes, issued by Banks through Bank. We work with number of world top ranking banks. When it comes to Letters of Credit (DLC’s LC’s and SBLC’s. Each instrument and how they work is described on a separate page.
We offer the following types of instruments:
Bank Guarantees – Stand by Letter of Credits
BG’s/SBLC’s owned
BG’s /SBLC’s leased
Letter of Credit
DLC’s
LC’s
SBLC is for Goods
Term Notes
MTN’s
Sale of LTN’s
Most of these instruments can be provided as owned or leased recourse or non-recourse, depending on the purpose they are going to serve.
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Application Procedure:
We will follow up sending you our EC NSNC NDA. With that in place, we have done our KYC and we will send you our Service Agreement for Bank Instruments. By then we have a Pre-approval for your request in place, and we will send you the final application for you to sign and return to us. Then we will get you the LOI/MOU. The whole process should take between 15 to 25 days after the first payment is made.
NB! Changes may occur without warning!
We offer Monetization of several Bank Instruments offering high LTV¨s and None-Recourse solutions.
In order for you to get started please we advise you to review our teams & condition or contact [email protected]
Monetization of SBLC’s/BG’s
Non-recourse Monetization
We offer monetization of Bank Instruments from top-rated banks. LTV normally 70 to 80%. Standard Swift B-to-B procedure MT760. Payment within 5 days after acceptance of Instrument. Fast processing!
For more information, contact [email protected]
We accept and can monetize both leased and owned (purchased) instruments.
Bank SWIFT:
We use the Bank SWIFT Network to have the Bank Guarantee (BG)/Stand by Letter of Credit (SBLC) delivered Bank-to-Bank-using SWIFT MT799 followed by SWIFT MT760 as standard. However, more and more of the major banks just go straight for the MT760.
Monetization LTV:
Loan to Value (LTV)
5 M to 100 B BG/SBLC – 80% Non-Recourse
Estimated Completion Time:
14 – 21 Days after all documents are signed and verified or 8 to 10 Days After Instrument has been delivered received and accepted on the SWIFT network.
Closing Process – SWIFT:
After execution of the Deed of Agreement by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizes.
The Monetizes bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
On receipt of the Monetizes bank SWIFT MT799 the Clients bank will deliver the BG/SBLC by SWIFT MT760 to the Monetizes bank.
Upon receipt, confirmation and delivery of the SWIFT MT760 the Bank Instrument Monetizes will within maximum 10 banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.
The Monetizes agrees to return the Bank Instrument unencumbered 15 calendar days before the 1 year and 1 day anniversary of the signed contract between the parties.
Project & Business Financing:
Financing of long-term infrastructure, Industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.
Recourse and Non-Recourse loan
Recourse Loans
Recourse loans are the opposite of non-recourse loans. In a recourse loan, the lender has recourse to the borrower’s other assets or income if the borrower defaults on the loan. For example, if a borrower takes out a recourse loan to buy a car and then stops making payments, the lender can repossess the car and also go after the borrower’s other assets, such as their savings account or wages.
Non-recourse Loans
Non-recourse loans are often used for larger assets, such as commercial real estate or large pieces of equipment, where the value of the collateral is expected to cover the loan amount. In these cases, lenders may prefer to limit their recourse to the collateral rather than pursue legal action against the borrower. This is because the legal process can be time-consuming and expensive, and the outcome may not be in the lender’s favor.
TRADE & INVESTMENT FINANCING
Investing and trading are two different methods of attempting to profit in the financial markets. Both investors and traders seek profits through market participation. Investors generally seek larger returns over an extended period through buying and holding. Traders, by contrast, take advantage of both rising and falling markets to enter and exit positions over a shorter period, taking smaller, more frequent profits.
Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. Trade finance makes it possible and easier for importers and exporters to transact business through trade. Trade finance is an umbrella term meaning it covers many financial products that banks and companies utilize to make trade transactions feasible.