19 Nov Top 10 Tips On How To Detect Fake BG/SBLC Providers
Top 10 Tips On How To Detect Fake BG/SBLC Providers
Before giving you these Top 10 Tips On How To Detect Fake BG/SBLC Providers, we want to advise everyone to be vigilant and very sure that the bank instrument provider they are working with is real and not fake, and they are providing you with a real bank instrument (BG/SBLC or letters of credit) from AAA rated banks.
This is very important because a bank guarantee or standby letter of credit from unrated banks has little or no value and they cannot be monetized for non recourse loans.
There is a huge misconception in the market that all BGs (Bank Guarantees) and Standby letters of credit (SBLC) are similar and have the same value, have the same LTV ratio when Monetized and have the same desirability. In reality, that is completely untrue. Comparing a Rated Banks Bank Guarantee (BG)/Standby Letter of Credit (SBLC) with an Unrated Banks Bank Guarantee (BG)/Standby Letter of Credit (SBLC) is like comparing Chalk and Cheese. It is like comparing darkness and light. It is never the same.
Please read our article titled “Reasons Why People Fail in BG/SBLC Transactions“. Its a MUST READ.
The value of a Bank Instrument, especially a Bank Guarantee (BG) or Standby Letter of Credit (SBLC), is determined largely on the quality of the financial institution that is issuing it. This is because a “Bank Guarantee” is the Issuing Banks “guarantee” of payment and therefore the “guarantee” is only as good and only as strong and only as valuable as the Bank that is issuing it.
World Top 20 Banks offer the best Bank Instruments (BG/SBLC) because they are large, stable financial institutions that do not default on their promises, and ultimately a Bank Guarantee is the Banks Promise to Pay! many Unrated Bank Guarantees aren’t worth the paper they are written on!
Take for instance, an Unrated Bank that has less than 10 Million Dollars in Capital but issues 100 Million Dollar Bank Guarantee (BG) / Standby Letter of Credit (SBLC) multiple times a week for 52 weeks a year. Do the maths. By the end of the year this financial institution has issued billions of dollars in Bank Guarantee (BG) / Standby Letter of Credit (SBLC) when the Unrated Bank has less than 10 Million Dollars Capital to its name. So we are advising our customers and readers worldwide to avoid Bank Guarantees (BG) & Standby Letters of Credit (SBLC), from unrated banks.
As industry experts and genuine bank instrument providers, it is very easy for us to detect a fake bank document, especially a fake BG or fake SBLC. Some unscrupulous elements can issue you a fake BG/SBLC without you even knowing. We have seen so many fake and worthless Bank Guarantees and Standby Letters of Credit from bank instrument scam victims. This is possible because the bank instrument industry is largely a hidden secret finance world where real information, truthful processes and real providers are hard to come by.
For most people, it is difficult to spot a fake bank instrument provider from a real one but here are a few ways and critical signs you can use to spot a fake BG / SBLC provider.
Top 10 Tips On How To Detect Fake BG/SBLC Providers
1. Bank Endorsed Deed of Agreement (DOA): Banks do not endorse deed of agreement contracts or LOIs. This action would place a financial liability on the bank and they cannot and will not incur that liability on behalf of their depositors. Scammers use this trick to make their story attractive. In many cases they will use corel draw, Photoshop etc to prepare authentic looking documents to convince you into believing that a prime bank endorsed the DOA document. So if you received any offer or document from anyone claiming the DOA has been endorsed by the bank kindly run because that is a RED FLAG that you are dealing with a FAKE BG/SBLC Provider.
2. Deed of Agreement (DOA) with grammar botches, made out of different bits of different kinds of agreements.
3. FREE EMAIL SERVICE: Most of these scammers use free email services such as www,gmail.com, hotmail, yahoo etc. They have no website, I mean, they cannot afford a website but somehow they are promising you 5 Billion dollar BG/SBLC? It’s a mystery how they succeed with such lies?
4. LOW PRICE: This is the number one trick they use in luring unsuspecting victims. They will promise to deliver you a bank guarantee or letter of credit value of 500 Million Dollars with payment of $10,000. Sadly, people are easily lured in by fake artificially low prices of financial instruments offered by these scammers. The truth is, when a scammer isn’t delivering anything real they can afford to offer you the deal of the century! Price Shopping clients will always get a bargain that will cost them a fortune.
5. BPU (Bank Payment Undertaken): Banks do not issue BPU to enable a customer to get a free financial instrument. This is just joker-broker nonsense.
6. ICBPO: ICBPO means Irrevocable Conditional Bank Pay Order. Banks do not issue irrevocable conditional bank purchase orders (ICBPO) for a lessor. In fact, a bank is precluded from incurring any liability on behalf of a depositor. Another joker-broker nonsense.
7. ICBPO to be issued by the Lessee’s bank for the Lessor. This convention is illegal by the vast majority of the world banks on account of the abnormal state of fraud around it. By issuing ICBPO the Lessee’s bank resolves to exchange assets to the Lessor paying little respect to the consequences of the renting exchange. Please RUN from ICBPO offers because it is a complete waste of time and no one has ever closed any real deal using ICBPO method.
8. Bank guarantees are never on any screen (DTC or Euroclear) for screening, authentication or settlement. All BGs must be transacted via standard non-Euroclear DVP protocol settlement procedures. We’ve discovered how scammers now set up fake cloned websites for authentication purposes. Be alert
9. Slightly Seasoned Instruments- Another joker broker nonsense. There is no such thing as a slightly seasoned instrument. Instruments are either fresh cut (new issue that has not been registered with a buyer) or they are seasoned (instruments that have already been sold to one or more buyers). In most cases it is joker brokers that are promoting this fake story.
10. Brokers movement advancing so-called “providers”, before you spend your significant lifetime, cash and vitality to advance the “supplier” you found on the web please make your DD over such a “supplier” and ensure that you are managing the bonafide and evident source. By promoting fake sources, you ruin your reputation and lose the trust of your customers.
Description of Bank Instruments ( Standby Letters of Credit (SBLC) / Bank Guarantees (BG) ):
1. Instrument: Fully Cash Backed Bank Guarantee (BG)
2. Total Face Value: Eur/USD 1Million (Min) to Eur/USD 50 Billion (Max)
3. Issuing Bank: HSBC London/Hong Kong, Barclays Bank London, Citibank New York, Deutsch Bank Germany or any AAA Rated Bank.
4. Age: One Year and One Day (with rolls and extensions where applicable)
5. Leasing Price: 4% of Face Value plus 2% brokers commission (Applicable only if there are brokers in the transaction)
6. Delivery: SWIFT MT-760
7. Payment: MT103 Swift Wire Transfer
8. Hard Copy: Bank Bonded Courier within 7 banking days.
BROKER INQUIRIES ARE WELCOMED AND APPRECIATED: Our brokers receive 2% commission for referral. We assist Clients and brokers in their attempt to secure funding by working on their funding requests that may require innovative financing.
Contact us today to know how a Leased Standby Letter of Credit mt760 from Barclays bank, HSBC, Chase Bank, Standard Chartered Bank or Bank of America can help you conclude worthy deals with your suppliers and contractors. Have a look at our portfolio and some of our recent projects: https://grandcityinvestment.
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