Who is a Genuine SBLC Provider? How Does One Find A Genuine BG/SBLC Provider?

 

Who is a Genuine SBLC Provider? How Does One Find A Genuine BG/SBLC Provider?

Genuine SBLC Provider is a bank or financial services provider like Grand City Investment Limited that provides real and genuine SBLC from prime banks without failure or stories.

To understand who these Providers are and how they function, one must understand what is called as Collateral Transfers in the financial world. Collateral Transfer is basically the process of transferring assets from one party (the Provider) to another party (the Beneficiary) often in the form of a Bank Instrument (BG or SBLC). This occurs whereby the Provider agrees (through his Issuing Bank) to issue a “Demand Guarantee” to the Beneficiary in return for a “rental” or “return” generally known as the “Contract Fee”. The parties agree to enter into a Collateral Transfer Agreement (CTA) which governs the issuance of the guarantee.

Please read our previous article titled “ How To Find Genuine Bank Guarantee (BG) Providers” to understand how to find Genuine BG/SBLC Providers.

I also highly recommend you to read “ Difference Between Swift MT799 And Swift MT760” – “about the different types of bank swift messages that is used in transmitting bank guarantees and standby letters of credit, between banks and other financial institutions” before starting to study this standby letter of credit sample.

A SBLC/BG Provider would often be a collateral management firm, a hedge fund, a Financial Holding Company (FHC), a non-bank commercial company,  or private equity company. They are high net worth corporations or individuals who hold bank accounts at a bank which holds either large sums in cash deposits, bonds, or other for of security that can turn into legal tender. Basically, in most cases these are liquid assets at the immediate disposal of their owner. Whenever the occasion arises, a Provider instructs his bank to secure and encumber liquid assets/ cash in his own account and authorizes the bank to “cut” (an industry term meaning to create a financial instrument such as SBLC or BG.

All liabilities that might arise from selling or leasing the SBLC/BG rests completely with the Provider since the financial instrument (SBLC/BG) was created at the Provider’s instruction alone and also since it is secured against Provider’s cash/ liquid assets held by the bank. Provider’s bank that creates and delivers the SBLC/BG is called the Issuing Bank.

Providers of SBLC/BG generally work through their brokers or mandates who further engage sub-brokers in the chain making direct access to Providers even more difficult. It is absolutely futile to look for SBLC/BG Providers over the Internet. For those who work in the Financial Services sector and interact closely with high net worth individuals, private equities, funds, asset managers, banks, etc. on a regular basis, the chances of coming across a genuine SBLC/BG Provider is much higher than those who are outside the Financial Services sector

For genuine SBLC brokers and a one stop center , do contact

Rudolf Umert
Email: RainerUmert55@gmail.com
rainer@sblcbrokers.com
www.sblcbrokers.com

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