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.

How To Monetize Bank Instruments

There are many types of banking instruments, the most common ones are; Bank Guarantees (BG) and StandBy Letter Of Credit (SBLC). Companies can also use Medium Term Notes (MTN) as a debt instrument. MTN’s were established as an alternative solution to short-term financing in the commercial paper market and long-term borrowing. Although all three are Widely used by high net worth investors as a wealth building option. All these different banking instruments can be monetized if the owner wishes to do so.

Monetize A Bank Instrument

If you are looking to monetize an SBLC, you may want to find a monetizer who can give you a decent LTV (loan to value) ratio. LTV’s are assessed by the strength of the security of the instrument and the banks credit worthiness. Before bank instruments are accepted by monetizers, they will often be checked for their legitimacy. This includes using programs to check documents, knowing exactly where the instrument came from and if the bank can verify where the instrument was issued from therm. Wording on the SBLC determines what the instrument can be used for. Just like Providers have their own ways of doing business, so do Monetizers. Monetizers prefer to monetize purchased SBLC’s verified from top 10 banks and some may require you to put the instrument into trade.

 

Non Recourse Bank Instruments

If you have a non recourse bank instrument, you may wish to get it monetized. HubHolzer Group are able to assist you, but there will be certain conditions set by monetisers. Some monetizers will require that certain wording is included in the MT760 to enable monetisation. Some bank instruments can be monetized but it has to be given to a trader which means the LTV can be fairly low; eg. some instruments can be monetised at 35 % LTV non-recourse.

Monetizing Non Rated Bank Instruments

In general, some monetisers keep away from non-rated bank instruments for the very reason that often these instruments are either fraudulant or are not worth the paper they are written on. Bank instruments such as SBLC’s have to be backed by collateral. That collateral would normally come from a client who holds a bank account within the issuing bank and will use their collateral to back an instrument. Non-rated banks however may not necessarily have the collateral to back the instrument thus deeming the SBLC worthless. Therefore monetisers tend to steer away from such instruments. That said however, there are some specialised service providers who will monetise non-rated bank instruments. Some will only monetize SBLC’s which have been issued by their ‘pre-approved’ network of non-rated banks whom they have pre-vetted to ensure that instruments which are issued from such banks have the collateral and wherewithal to issue the bank instrument. We have access to these very specialised monetisers.

Access Trade Platforms

Trade platforms can be used for many reasons. Some choose to use them to either build wealth or fund a project or business.

Trade Platform Facts

You may have heard about traders working in Banks, Hedge Funds and on Wall Street. There are elite traders you may not know about who work privately which can create such phenomenal returns. It’s not easy getting into such platforms, as the traders are very particular about who they let into the platforms. It is a privilage to get onto these platforms, not a given. Potential participants will have personal checks and balances done on them before entering such platforms. Checks can include: validity of passports, documents and sometimes a personal face-to-face interview with the trader. Our group deals in clean business only. We might run checks through interpol to make sure there’s no histo of mone launderin and previous criminal convictions. Copyfish

Trade Platforms For Businesses

  • Project Finance
  • Working capital/build cash reserves
  • Investment for growth and expansion •
  • Reduce debt and borrowing costs
  • Enhances company’s credit status
  • Make acquisitions

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