Sblc monetization process: How to use it?
Sblc monetization process is a written commitment of a bank that issues it to pay a certain amount of money on behalf of the bank’s client in favor of a beneficiary in case the client/buyer is not able to fulfill its financial obligation to the beneficiary/seller.
Using a Standby LC in business transactions is an indication of good faith and proof of financial credibility and repayment capabilities of a buyer. Standby LC is widely used in commodities trading, when it is necessary to buy the goods from a local supplier or foreign exporter.
SBLC can be also used as a security to obtain credit lines and is ideal for company, which plans to expand its business but does not want to utilize its assets.
A POF is a document prepared by a financial institution that affirms that an individual or business entity has the funds on hand to enter into a given financial transaction. A document of this type is sometimes prepared at the request of a seller who is considering an offer from a buyer. The seller requests the proof through the buyer, who in turn authorizes his or her bank or other institution to provide data that confirms the ability to honor the terms of the transaction.
We have also developed relationships with some of the Top banks in the world to Monetize Bank Instruments for clients worldwide by arranging the monetization against owned bank instruments such as BG’s (Bank Guarantees), LOC’s (Letter of Credit), SBLC’s (Standby Letter of Credit), and other banking and financial instruments.
This form of financing can be used in combination with our cash backed stand by letter of credit (SBLC) or Bank Guarantee (BG) Program in order to monetize the newly created document to obtain the right funds for project financing.
Monetizing bank instruments is the process of liquidating such instruments by converting them into legal tender. We can monetize or lend on just about any bank instrument to be used for project funding, move them into various trading platforms quickly and easily, as well as creatively incorporating them into financing certain development projects.
We can monetize CD’s, SBLC’s, DPLC’s, BG’s and MTN’s. This can be accomplished in 5-15 business days.
Sblc monetization process or stand by letter of credit is becoming rather common. Many people refer to this as sblc funding or sblc financing since you are essentially obtaining cash on the basis of the sblc or bank guarantee.
A client, typically a business owner, requesting a standby letter of credit must prove to the bank that he/she is capable of repaying the loan. Collateral may be required to protect the bank in the event of default.
The bank typically provides a decision in writing within one week of receiving final documentation to complete the processing of the client's application. The client must pay a SLOC fee for each year that the letter is valid.