01 Aug BG SBLC MT760 Bank Guarantees
BG SBLC MT760 Bank Guarantees
Bank Instruments such as Letters of Credit and Bank Guarantees are frequently used but seldom properly understood.
Whilst these ‘instruments’ are utilized in conventional trading on a day to day basis, they can also be employed in complex financial structures designed to maximize financial positions and bespoke to each individual requirement.
Through existing credit relationships, Grand City Investment Limited is able to accommodate bank obligations such as Bank Guarantees, Standby Letter of Credit as well as facilitate credit line and monetization of these Guarantees.
As genuine bank instrument providers, our Global network specializes in the Monetization of almost any type of Bank or Financial Instrument worldwide from 5 Million to 5 Billion of Dollars. Offering up to 80% of Bank Instrument value, with 03.00% APR interest charges due yearly, facility / loan terms up to 60 months
We offer a fast completion process of between 7 to 14 working days.
|Bank Instruments: Unlike traditional Letters of Credit, a bank instrument is where the beneficiary obtains payment against papers demonstrating delivery, The SBLC may allow the beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond, a key principal with this instrument is bank deal only with documents or good, and the bank do not involve themselves in the commitments or contracts between the two parties directly, the advantage of this system is the bank don’t check the reliabilities of the project. The concern of the issuing bank is the term and the condition of the credit itself. The decision of the Bank Instrument is based entirely on whatever the documents submitted to the bank appears on their face to comply with the term of LC Bank Instrument.|
|Bank Guarantees (BG) Bank Instrument: Bank Guarantees (BG) is a negotiable financial debt bank instrument made by a guarantor bank on behalf of the applicant to mitigate risk on behalf of the beneficiary party; it may be used to assist in Trade Finance, International Trade, Domestic Trade, and various other types of contracts where the backdrop of a vetting third-party (the issuing bank) could be used. When a bank issues a letter of guarantee to a beneficiary, it looks at the credit worthiness of the applicant. Not the transaction at large. Thus the ability to acquire the bank instrument like a BG is largely based on the relationship of the bank with its client.The BG is very similar to the LC; it guarantees the payment to the beneficiary. However, a BG is usually used in the event there is default. If for instance, a purchaser of goods issues a BG to the seller, and if after a delivery, the payments were not made for some or the entire contracted amount, these bank instruments acts like a draft or check allowing the beneficiary to cash in it.|
Where do we use the Bank Guarantee and Standby Letter of Credit
(BG SBLC MT760 Bank Guarantees)?
Bank Instrument Type: Standby Letter of Credit (SBLC) Cash Account Bank Guarantee (BG)SWIFT MT799
Standby Letter of Credit / SBLC Provider
Grand City Investment Limited is one of the top private providers of Standby Letter Of Credit (SBLC).
A Standby letter of credit also known as (SBLC) is an irrevocable commitment or guarantee of payment by a bank on behalf of their Client or in favor of the Beneficiary. Very much like Bank Guarantee, a Standby Letter of Credit can be used by Buyer as collateral to secure a Loan or Credit Facility or to make purchase in business transactions. SBLCs are very flexible instrument for all types of business. It can cover anything from an ordinary guarantee commitment to a more sophisticated financial instrument.
‘Leased’ SBLCs is term used when a Bond/Security is transferred for certain duration to Client or in favor of the Beneficiary to act as Collateral Security to secure a credit facility or loan. This process is called a Collateral Transfer.
As SBLCs are mostly ever issued to profitable companies with strong balance sheets and a proven trading history; Grand City Investment Limited being an experienced SBLC provider adopts this process of Collateral Transfer or the Syndicate enrollment to position Client to access these financial Instruments via their Issuer bank platforms, as long as they can afford the interests and costs of issuance.
BG SBLC MT760 Bank Guarantees Monetization
Grand City Investment Limited are also SBLC monetizers; as SBLC can be structured to act a a Loan Security. In the event that Client wants to secure a Loan or funding and have access to an SBLC, we will engage our Lender platform to obtain a Credit Facility… This Facility must be secured and collateralized by a cash backed SBLC. If does not have a qualifying SBLC then, Grand City Investment Limited can engage their Issuer bank to set-up Guarantee Facility in favor of client to act as their Issuer. Therefore, Grand City Investment Limited can incorporate a Bilateral Funding Program where we can merge services of our Issuers and that of our Lenders to avail Monetized Loan Funding.
NOTE: Qualifying Instruments
- The instrument needs to be a Asset/Cash Backed Bank Instrument, such as a BG or SBLC.
- The Bank needs to be a World Top 25 Bank with a “A+Bank-Rating” or better.
- The instrument must be transferable and will need to be transferred to the lender via MT799 or MT760.
In order to monetize an SBLC (SBLC Monetization) you must be in possession of the instrument and it must be paid for prior to monetizing (Obtain a Bank Confirmation Letter from your issuer saying they are RWA to issue to Lender Bank for monetization). The Benefits of Monetized funds include
- Use Bank Instruments as Loan Security
- Finance Trade Facilities
- Offset Tax and Debt Liabilities
- Free-up Locked (or blocked) Funds
- Create Fixed Returns
- Verification & Due Diligence Services
When it comes to issuance, leasing, funding and monetization of any bank instrument such as bank guarantee, standby letter of credit, bg sblc, getting to the finish line is all that counts and that’s what we excel in at Grand City Investment Limited. We have been successfully closing deals for over 37 years.
Below are a few of the things that make us unique and different from other companies.
12. No prepayment penalty
13. Fast Approvals Closing
NOTICE TO BROKERS/AGENTS/COMPANY REPS: We value and appreciate brokers who are direct to their clients. New brokers are welcomed and compensated with between 1% to 2% commission on every deal. Here are a few of the many benefits of being a Grand City Investment broker:
- Professional Support for brokers
- Earn between 1% to 2% Commission on Every Deal
- No Broker Chains, So please Be Direct to your clients
- Brokers are 100% Protected Against Possible Circumvention.
- Wide Range of Financial Instruments to choose from such as bg sblc issuance & Monetization Programs.
Telephone: +852 8191 7151