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SBLC( STANDBY LETTER OF CREDIT) Monetisation
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SBLC Monetisation The reason Standby Letters of Credit are leased is so that they may be monetised. SBLC Monetisation allows companies to obtain loans and lines of credit. A “Leased” Standby Letter of Credit will have the exact same features as a “Leased” Demand Bank Guarantee. The verbiage within the format will be exactly the same as a “Leased” Demand Bank Guarantee. This verbiage will be absolutely precise and exact. The “Leased” Standby Letter of Credit will be governed by ICC Uniform Rules for Demand Guarantees, (URDG 758). It will be payable on first demand. To monetise the Standby Letter of Credit the SBLC Provider will instruct their bank to transmit the instrument to the beneficiary’s bank. The beneficiary’s bank will apply the Standby Letter of Credit to their account. Once the beneficiary has taken ownership of the Standby Letter of Credit they can apply for credit facilities. They can approach their bank and offer the instrument as security against a loan or line of credi...
SBLC STANDBY LETTER OF CREDIT LEASE
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Collateral Transfer It is a known fact that banks have been reducing their loan books for years. Thus, today it is so much harder for companies to obtain loans and lines of credit. In Switzerland we are lucky to have one of the market leaders in Collateral Transfer. Collateral Transfer is the means by which a company seeking credit facilities can obtain a SBLC “Lease.” Two parties, the SBLC Provider and another company, (referred to as the beneficiary), will sign a Collateral Transfer Agreement. The SBLC Provider agrees to “lease” to the beneficiary, usually for one year, a Standby Letter of Credit. The beneficiary agrees to pay the SBLC Provider a fee for “leasing ” the Standby Letter of Credit. This is referred to as the Collateral Transfer Fee. If you enjoyed this article and you want to read more interesting articles like this please visit our website: www.sblcbrokers.com SBLC INTERMEDIARE ( www.sblcbrokers.com ) We are direct providers of Loans, Trade Finance P...
Standby Letter of Credit (SBLC) OR Bank Guarantee (BG)
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This topic is about Standby Letter of Credit (SBLC) & Bank Guarantee (BG ) which is better between? Please check our older post about THE USES OF STANDBY LETTER OF CREDIT (SBLC): www.sblcbrokers.com Today we will be talking about Letter of Credit and Bank Guarantee. Standby letters of credit and bank guarantees are both methods of providing assurance to a vendor of payment on credit. They are often used for international trade transactions where the financial risk is high. A bank guarantee is a commitment by a bank to pay its client’s obligation up to a certain amount, while standby letter of credit is a more formal document that details the obligations of both parties. Standby Letter of Credit A standby letter of credit serves as a secondary payment method for a bank’s client should the client fail to pay the vendor an agreed-upon amount. Neither party expects to draw upon an SLC. Indeed, doing so can damage the creditworthiness of the bank clien...
SBLC ( STANDBY LETTER OF CREDIT ) BROKER OF THE MONTH
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Rainer Rudolf Umert , Esq Financial Planner & Advisor/ Trade Finance Specialist Direct Email: rainerumert55@gmail.com Office eMail : rainer@sblcbrokers.com Msc CEIBS, Chartered Alternative Investment Analyst (CAIA), Certified Financial Planner (CFP) MBA CEIBS – China Europe International Business School Chartered Alternative Investment Analyst (CAIA) Certified Financial Planner (CFP)
DIFFERENCE BETWEEN A LEASED SBLC OR AN OUTRIGHT SALE
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If you lease any financial instrument ( eg SBLC ) then that makes you a temporary holder of that particular document, usually up to one year and one day time period. Whereas if you purchase any financial instrument ( eg SBLC ) then you own that instrument outright with the added benefit of being able to lease the same instrument to a third party. SBLC lease, purchase and monetisation isn’t quite as straight forward as a simple definition, which is why you do need to consult financial experts that deal with this niche area in finance specifically. We at SBLC Intermediare have over 25 years experience in dealing with various financial instruments such as BG, SBLC ( Fresh cut or Seasoned ). Primary Focus on Bank Guarantee (BG), Standby Letter Of Credit (SBLC), MTN (Mid Term Note), LTN (Long Term Note), PPP (Private Placement Programs). We also have access to BG/SBLC monetization. We are also providers of MTN which are specifically for lease and purchase, Our bank instrument ...
Top 9 Tips On How To Detect Fake BG/SBLC Providers
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1. Slightly Seasoned Instruments- Another joker broker nonsense. There is no such thing as a slightly seasoned instrument. Instruments are either fresh cut (new issue that has not been registered with a buyer) or they are seasoned (instruments that have already been sold to one or more buyers). In most cases it is joker brokers that are promoting this fake story. 2. Deed of Agreement (DOA) with grammar botches, made out of different bits of different kinds of agreements. 3. FREE EMAIL SERVICE: Most of these scammers use free email services such as www,gmail.com , hotmail, yahoo etc. They have no website, I mean, they cannot afford a website but somehow they are promising you 5 Billion dollar BG/SBLC? It’s a mystery how they succeed with such lies? 4. LOW PRICE: This is the number one trick they use in luring unsuspecting victims. They will promise to deliver you a bank guarantee or letter of credit value of 500 Million Dollars with payment of $10,000. Sadly, people ...