30 Jul Bank Financial Instrument Monetization

What Is Bank Financial Instrument Monetization & How Do You Monetize Bank Instruments?

Bank Financial Instrument Monetization is the process of converting financial instruments, such as Bank Guarantees (BGs), Standby Letters of  Credit (SBLCs), and other bank instruments into liquid cash or legal tender. This process allows businesses to access funds that can be used for various purposes, including non recourse loans, project financing, trade transactions, or investment opportunities.

During monetization, the bank or financial institution verifies the instrument’s authenticity and value before providing the funds. This can be beneficial for businesses that may have dormant or inactive financial instruments, enabling them to leverage these assets for immediate capital. Monetization can typically be completed between a few days or a few weeks and is often used to enhance liquidity and support business operations without taking on additional debt.

To monetize a Bank Instrument (BG or SBLC) the applicant must have the instrument already issued in their company name, and it must be verified before monetizing. If you do not have a bank instrument (BG or SBLC), Grand City Investment Limited will facilitate the issuance and monetization of the BG or SBLC from start to finish.

As already explained, the monetization of banking instruments (BG or SBLC) consists of liquidating the bank instrument by converting it into a legal tender = cash. Monetization can be supplemented through non-recourse loan (no refund) or recourse loan (agreed upon loan repayment terms).

We can monetize or lend on about any bank instrument to be used for project funding, move them into various trading platforms quickly and easily, as well as creatively incorporate them into financing certain development projects. We can monetize CD’s, SBLC’s, BG’s and many others. This can be accomplished in 10 business days.

Grand City Investment Limited is the world’s leading bank instrument monetizer, with over 40 years of unrivaled history of trust and credibility. We are a government-licensed loan company that was incorporated in Hong Kong on MAY 29, 1984 with Company Registration No. 0137353 under the Money Lenders Ordinance (Chapter  163  of  the laws of Hong Kong). We are the premier providers of Trade Finance, Recourse Loan, Non Recourse Loans, Insurance, Investments, Wealth Management, Portfolio Management, Trade Platforms, Private Placement Programs as well as the issuance and monetization of Bank Instruments.

Over the years, we have developed relationships with some of the Top banks in the world to Monetize Bank Instruments for our global clients.

Monetizing an SBLC or standby letter of credit is becoming common and can be done in as little as 10 days. Many people refer to this as SBLC funding or SBLC financing.

As monetizers of bank instruments, we offer Monetization of Bank Guarantees and Standby Letters of Credit @ 80% LTV. We facilitate the issuance and monetization operation from A to Z, all in-house, without involving a third party.

SAMPLE OF BANK INSTRUMENT and NON-RECOURSE PROJECT FUNDING ARRANGEMENT

Bank Financial Instruments Monetization Services

Bank Instrument Monetization is a low-cost, low-risk method of project or trade finance that monetizes inactive financial instruments by converting them into cash or cash equivalent by liquidating the instruments. Our financial instrument monetization expertise, when coupled with an impressive list of strategic partners, ideally positions Grand City Investment Limited to monetize financial instruments anywhere in the world at very attractive pricing.

Bank Financial Instruments Monetization Terms

We issue and monetize financial instruments inhouse without involving third parties. That means we serve our clients directly, which results in lower costs and fast turnaround time for clients. We perform quickly and precisely and offer reasonable terms and pricing for monetization services. Our Standard Monetization Terms are listed below.

Bank Financial Instrument Monetization

Standard Bank Financial Instruments Monetization Terms

Financial Instruments to be monetized can be owned or leased
We prefer monetization transactions of at least $10 million minimum.
Transaction turnaround time is normally 10 working days or less
Brokers and intermediaries must have a legally binding agreement
In brokers and intermediary transactions, the contract is between principals after the initial introduction

Bank Financial Instruments Monetization Process

Complete Recourse Loan & Non-Recourse Loan Monetization of Leased Bank Guarantee (BG) for the intention of Project Funding.
We issue bg, dlc and sblc from top rated banks such as Citibank New York, Chase Bank, Wells Fargo Bank, Bank of America, Credit Suisse, Barclays Bank London, HSBC Hong Kong or HSBC London, Standard Chartered Bank London, Dubai or Hong Kong, UBS Switzerland, Deutsche Bank AG Germany etc.

There are 4 Monetizations that We Utilize:

1. Euroclear – The Euroclear process is extremely fast, and the best part is there are no SWIFT fees. Euroclear is one of the most established financial transaction networks in the world and was founded by JP Morgan in 1968.

2. SWIFT – SWIFT stands for: Society for Worldwide Interbank Financial Telecommunications (SWIFT). This networking system powers most international money and security transfers worldwide. We use SWIFT system in bank instrument issuance and monetization transitions. The BG/SBLC is delivered between the two banks through SWIFT MT799 and SWIFT MT760.

3. DTCC – The Depository Trust and Clearing Corporation is another network system that we use. Again, through this network/system, there are no SWIFT fees.

   4. Bloomberg – The Bloomberg process is extremely fast and there are no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.

What Is the Loan To Value (LTV)?
The monetization Loan to Value (LTV) for a Leased Bank Guarantee (BG) or SBLC is 80% for Non-Recourse Loans.

Monetize bank financial instruments today

While Grand City Investment Limited has decades of experience and unparalleled expertise across the entire range of business loans, trade finance, and project finance, nowhere are our experience and innovation more evident than in bank instrument Monetization. There is no better partner for monetizing bank instruments in the world than Grand City Investment Limited. There is no other entity in this sector that can match our history, experience and expertise.

Contact us today by emailing us at:  apply@grandcityinvestment.com to see how we can help you with your contracts, trade finance, import and export transactions