Businesses have the option to monetize a bank instrument. This will then allow businesses to have cash equity which will enable business owners to reinvest back into their business. There are a number of reasons why people choose to monetize bank instruments. One reason is to have the ability to use cash from the liquidated instrument to buy goods and trade them with minimal risk. Struggling businesses can use them as a way of raising money to invest in the operations.
We work alongside other financial institutions who can issue and monetise bank instruments. Bank instruments can be useful when starting up a business. See how they can work for you. You can either lease an instrument and have it monetized to provide capital for your business or, you can take it one step further and we can enter the monetized amount into trade to generate further funds. We have service providers who can facilitate in issuance of BG’s/SBLC’s, monetize and last but not least trade the monetized instruments. All of our service providers have a proven track record. Using instruments to fulfill your capital requirements can be a less complicated method to meet your capital needs.
This is an overview to private wealth building programs. The overview is designed to help you understand what they are, how they work, and things you may want to consider.
Wealth Building Programs
By providing direct access into exclusive, private primary markets, investors are open to global banking and investment opportunities. Trade platforms can provide different wealth building strategies focused on generating superior risk-adjusted absolute returns. These platforms not only makes an investment portfolio exclusive but creates custom tailored solutions for any financial goal.
Project owners can apply for lines of credit with their own bank to support the financing of their project. Normally the credit line needs to have some collateral backing it, which is where a bank guarantee letter (BG) can come into play. There are options for project owners to either buy or lease the bank instrument. A bank guarantee such as an SBLC is backed by collateral for one year and one day. The corporation who provides the collateral then becomes the ‘Provider’ of the SBLC. You can use the leased SBLC for 366 days and then decide whether or not you want to renew the lease? Renewals are not a given and are offered on a case by case basis. If the bank guarantee isn’t renewed, then it has be returned unencumbered and free of any liens.
In today’s financial markets there is misinformation pertaining to Bank Guarantee and Standby Letter of Credit transactions, largely due to the lack of correct information available. In order to keep informed one must go out of their way to learn about the industry and how it operates.
The Bank Instrument industry is a world where real information, truthful processes and real bank instrument providers are hard to come by. Here we will try to provide some useful information so that you can educate yourself further on how this industry operates. In this section we will talk about Standby Letters of Credit.
Fully prepared financial statements can provide funders a lot of information about the company’s current state of affairs. When you start a new business venture, the financial statements can be included with a business plan. Whether your a startup business preparing financial records or a company looking to grow and requires expansion capital, all company financial reports work on the same principles. Companies can use bank instruments to help manage cash flow problems within your organisation as well as using them as a method of trade finance. We have outlined the financial statement format as an example you can use:
Income Statements ( profit / loss / revenue / forecast)
Statements of Cash Flow (historic and current)
Balance Sheets (assets / liabilities)
Financial Ratios and/or break even analysis
It is possible to apply for a grant in OECD member countries from Governments and NGO Foundations but you might discover that not all projects get covered by grants. It can be difficult to find organisations willing to help finance a project in particular; those projects that have a unique selling point that counteract current problems but comes with a high-risk approach.
Let’s say a developer needs funding, when they apply for project finance, the lender might put together a structured finance solution to suit the developer’s project requirements. But what does structured finance mean and how do they do it?
What is Structured Finance
The lender will look at the development project to determine what it’s requirements are and then structure a finance model according to the projects needs. If the borrower has been refused funding for whatever reason, this might be the best route to go down. So in other words, structured finance not only benefits the borrower but also protects the funder.
Today there are many ways to get seed funding for a business. The old traditional way was to go and ask the bank manager for a business loan. As there are problems in the economy and banks are being a lot more frugal with commercial loans, people need to look elsewhere to get the right loan to suit their business requirements.
The 80’s was the start of the bull market economy. You could invest your money in bonds which were paying out at a flat 15% interest rate, risk free. It was a good time to invest in companies because the corporations were forced to compete with 15% rates to be more efficient and investing their capital wisely.
Winding the clock forward to present day, the federal reserve have been printing money excessively and have been giving corporations access to cheap loans. As a result, companies are over valued through stock purchases, share buybacks which means they are not investing in their future growth. The over supply of money printing is reshaping the global economy which is non sustainable and there is now too much corporate/ private debt. Read more →
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