Monetization of Bank Instruments
The funder will monetize bank instruments such as SBLC’s and BG’s up to 100% of face value minus customary bank fees. The principle assigns the instrument over to the funders company for 1 year. The funder will then monetize the instrument. At the end of 1 year the funder will reassign the instrument back to the principle with no repayment necessary.
Minimum value $100 million no maximum.
Once all the necessary documentation has been gathered and the funder has completed his due diligence the funder will issue an Offer to the principle with all his contact information. Assuming the principal acts diligently the deal can be completed in 2-3 weeks.
The funder does not work with MT760 or any type of SWIFT. He asks when the time comes to have the instrument registered on Clearstream. This is a fast easy way to transfer the instrument and it is a lot less expensive,
Documents need to get started;
*Completed CIS
*Clear clean copy of the instrument
*Clear clean copy of the principle’s passport
*If the instrument has been posted on Euroclear a copy of the screen shot. If for any reason the funder can not verify the instrument through his normal means he may ask the instrument be posted on Euroclear up front.
*A letter from the principle’s bank to the principle stating upon the principle’s request the principle’s bank will register the instrument on Clearsteam. Ask your bank for that cost. It is usually less cost than a SKR or MT760
The funder will also consider hard assets such as precious gems, metals or fine art.
In this case and SKR or insurance will be required. The SKR needs to come from a top world bank. The insurance need to come from a AA rated or better Insurance Company.
The Funder will also consider Real Estate.
Option B
This funder will Monetize an SBLC or BG in the from of a loan. The loan will be up to a 90% LTV with an interest rate of 1-2% depending on the issuing bank.
Minimum $10 million.
Maximum over 1 billion is considered on case by case.
Items need to get started:
*Completed CIS
*Clean color copy of the instrument
*Clean color copy of the principle’s passport
*A copy of the swift message that came with the instrument or if posted on Euroclear a copy of the screen shot
*A brief summary explaining amount of funds the principle is looking for, a description of the project, use of funds and a explanation how the instrument was acquired.
Once the above information has been submitted to the funder they will come back with terms and conditions and any additional documentation they will need.
