What is Bank Instrument (BG/SBLC) Monetization.

Bank instruments monetization is the process of liquidating such instruments by converting into legal tender in which the leased or purchased bank instrument is being bought at a premium over the purchase or lease price by a monetizer.

A financial instrument can be technically leased from an account holder, an asset owner, and asset management companies in reality.

Understanding SBLC / BG Monetization.

Maybe you are a salaried employee with an average take home of $ 5000 a month. Like most employees, your out-goings are directly proportional to your salary. One month you suddenly need $ 2000 for something. You decide to write a cheque and go to a “shop Cheque Cashier”. The shop owner might ask you to fill in a form with all your details. He will do a soft check of your credit rating, perhaps check your bank statement and see that you have a regular incoming salary of $5000 a month. Satisfied with your credibility, he might offer you 70% of your bank cheque’s face value as immediate cash payment. You being in urgent need of money will accept a payment of $ 1400 against your cheque of $ 2000. Days later, the shop Cheque Cashier will present it to your bank — thus making a profit of $ 600 for himself. This is monetization.

For bank guarantees (BG) or Standby Letter of Credits (SBLC), the issuer of these bank instruments is bringing a piece of paper or an electronic bank to bank Swift message to a monetizer and asking for CASH against that document. The maturity date of this bank instrument is usually a year away. The monetizer, after conducting his due diligence and verifying that the instrument is genuinely issued by a well reputed bank, might offer the owner of this bank instrument 70% of its face value. He might pay the issuer this amount immediately or within a span of three to four weeks. The client, who has sent this BG/SBLC to the monetizer takes the CASH and utilizes it for whatever purpose he seeks the money.

During time of accepting cash against his bank instrument, the client must understand that the monetizer has given him money against his post-dated instrument and that after one year the monetizer will definitely present his BG/SBLC to the issuing bank and demask for and cash against it. There is a misconception among most BG/SBLC holders that the monetizer maybe asked to return their bank instrument 15 days before its maturity free from all liens or encumbrances to the owner. This is just like taking cash against your cheque from a shop Cheque Cashier and then asking him to return the cheque without presenting it to your bank. That is not possible. No monetizer in the world will give you cash against your bank instrument and then later return it without presenting it to the issuing bank.

Such a possibility for returning BGs & SBLCs might exist, if the proceeds are put on trade and the trader might have earned manifold more than the face value of that bank instrument. But whenever you seek “monetization” of any bank instrument, please comprehend that you are taking advance payment against it and that the instrument does not belong to you anymore. The monetizer will reclaim money he had advanced you against that BG/SBLC you gave him a year ago by presenting it to the issuing bank upon its maturity.

Benefits.

1. good value
2. It can come under the usage of any individual or company able to monetize it with a credit facility, in return generating profit-enough to pay for the provider fees, any loan granted to the beneficiary, and monetization cost.

Finance A Business Using A Bank Instrument.

Bank guarantee and standby letter of credit could be used to fund a business, especially those seeking to expand or grow. Getting a monetized BG/SBLC is the easier and fastest way to get some much-needed funds for a company. Bank security can be monetized and then used to create market for trading. One of the better alternative way to fund a company may be BG’s/SBLC’s. A possible explanation is, you’re not reliant on a lender person. The investments are likely to come in tranches, which might be a great way to handle your money.

Bank Roles In BG/SBLC Transactions.

Banks are not initiators but rather deliverers of the transaction.
Banks don’t issue Bank Guarantee or Standby Letter of Credit” Instead, the bank is the deliverer, not the initiator of the transaction; They confirm their client has sufficient funds The bank is just the deliverer courier who works for the BG and SBLC Provider, the asset owner, asset holder, or asset manager.

The Bank serves as the courier and receives a financial order from a supplier to send to the receiver’s bank one of the providers asset (BG or SBLC). In other words, the banks are instead of the courier, becoming widely known as MT messages as Sender and Recipient of SWIFT messages. (if it’s MT760. MT799. and so on)

Apart from reviving fees for “cutting”(initiating)and “delivering” the bank instrument, the bank holds no interest i the transaction As the financial instrument was launched and secured since then against the cash positing in the bank account of the provider at the issuing Bank, all other responsibility for the asset is theirs.

Why Banks Don’t Issue Bank Instruments BGs & SBLCs.

(A) Bank Bond
(B) MTN (Mid Term Notes)
© Bank Stock or Shares

The bank Never uses its cash to secure or encumber a Bank Instrument BG or SBLC. In the Bank, BG or SBLC are secured against client cash account of the provider.
BGs and SBLCs are niche market client product instead of Bank product created at high net worth bank clients request with significant cash holding at the bank.
Tell the Bank Officer at your local world top 25 Bank Branch that you want to by a Leased Bank Guarantee. As BGs and SBLCs is not a public offered Bank product most will not know what you are talking about. They are only privately available to high net worth Bank clients with having enough funds to cut the instrument against the funds in their Bank account.
You need to have an individual Bank account called a custdial account to issue a BG or SBLC. A custodial account is a particular Bank account that can release, receive, and hold financial instrument. Establishing a custodial account at a bank takes three months+ and cost approximately $250,000 to 350,000 Dollars during setup. Such account are generally made available to the top 1% of private Bank clients only. You cannot just walk into a bank ask to set up a custodial account.
Once a client has a custodial account. It can then issue BGs and SBLCs and sell it to any clients not as a bank product but as his own bank instrument as a provider since the bank plays no part of the lease agreement between the provider and the lessor.

Genuine Bank Instruments Providers.
website : becticfinance.com

Is can be very hard getting a genuine BG/SBLC provider through. The bank do not market BGs/SBLCs as their own banking goods, only they are not authorized to. Bank Guarantees and Standby Letter of Credit are issued in an account at the bank by high net worth client with substantial capital reserve. clients of high net worth are typically private equity, hedge funds, pension funds, Major companies, etc. Not only is it very challenging to get in contact with providers of Bank instruments, but they are also very stringent, but they also don’t tangle around.

Swift Fees.

When a client sends an application for a Bank Guarantee or Standby Letter of credit, most do not understand how the procedures work. Certain buyers think that there are no fess involved when issuing a bank instrument and presume the SWIFT messaging is FREE. This is completely FALSE. The Bank of both parties communicate using SWIFT messages. sending a SWIFT message isn’t cheap. The charges normally cost at least 2% of the face value of the BGs or SBLC.

ATTRACTIVE FEATURES

1. SBLC FROM $10 MILLION TO $50 BILLION +
2. BEST FOR PLATFORM TRADING
3. SUITES PROJECT FINANCING
4. MINIMUM RISK TO CLIENTS
5. EXCELLENT LOAN TO VALUE
6. NON-RECOURSE LOAN
7. NOMINAL COMMISSIONS
8. LITTLE PAPERWORK & QUICK DISBURSAL

We are providers of Bank instruments monetization at BECTIC FINANCE COMPANY LIMITED.
We offer monetiztion/discounting of bank instruments such as: Cash-backed Standby Letter Of Credit/Bank Guarantee (BG/SBLC). Medium and Long Term Notes (MTN & LTN). Our monetization rate (LTV) is excellent, and our procedure is seamless, stressfree and quick.

Are you a business owner who requires monetization of bank instruments (standby letters of credit, bank guarantees, etc.) and would like to work with a reputable, experienced, and trusted resource?

Are you interested in learning how to monetize a standby letter of credit?
At BECTIC FINANCE COMPANY LIMITED, we work with the top monetizers in the world.
website : becticfinance.com

Our Standard Operating Procedure.

Once we know our clients and how much capital they need, we will issue a contract.
Once the service contract has been served, here is the process:

1. Provider issues a term sheet. Both parties execute.
2. Provider’s bank sends MT799 to Provider.
3. Provider issues loan agreement. Both parties execute.
4. Provider sends MT799 to borrower’s bank, confirming ready, willing, and able to fund.
5. Borrower’s bank sends MT760 to Provider.
6. Provider funds borrower.

Please contact us here :
BECTIC FINANCE COMPANY LIMITED
website : becticfinance.com
Email : info@becticfinance.com
Sktype : bruce.fung001@outlook.com