Letters of credit (LCs) or sometimes known as documentary LCs are financial instruments. It is an instrument from a bank which guarantees a buyer’s payment to a seller if certain criteria are met. There are fundamental components of each type of Letters of Credit for International Trade and as such Letters of Credit law are governed universally by a set of guidelines called the UCP 600 which was first produced in the 1930s by the International Chamber of Commerce (ICC).Read more
International Trade Finance
Trade Finance can help your business cash flow as a way of payment security. Leased or purchased Standby Letter of Credit (SBLC) can help aid businesses in many ways such as, credit enhancement, project finance and trade finance.
You can apply for an SBLC at you commercial bank or with other outsourced Providers.
Monetizing Your Cash Backed Bank instrument
Just be aware that not all SBLC’s can be monetized and there are just a small handful of Monetizers who can monetize cash backed SBLC’s. SBLC’s Monetization process is fairly fluid once all agreements are in place but be aware that they too also come with set terms and conditions such as LTV and Bank rating.
Prestige Capital Partners provide you with information about bank instrument; how they work, what they are used for and what to look out for. If you are unsure about SBLC’s, we ask you to ask your bank manger or research the web thoroughly before any transactions are in place.
Monetize A Bank Instrument – Monetizing Rated And Non Rated SBLC’s
Businesses have the option to monetize a bank instrument for credit. 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. You can either purchase or lease an SBLC and have the bank instrument cashed in (monetized) to provide capital for your business. As well, 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 bank 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.
Bank Guarantee BG – Bank Instrument Providers – Letters Of Credit
Bank Guarantee To Fund Projects
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 lease or buy a bank instrument. A bank guarantee such as an SBLC is backed by collateral for one year and one day and then you can decide whether or not you want to renew the lease?. If the bank guarantee isn’t renewed, then it has be returned unencumbered and free of any liens.
StandBy Letter Of Credit – Purchase Or Lease An SBLC
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.