Bank Guarantee
Through existing credit relationships, we are able to accommodate bank obligations such as Guarantees and Standby L/C’s for credit line and monetization facilities. Offering up to 90% of security value, with interest charges due yearly, we can offer credit allowing facilities up to 96 months.
Fast completion process and interest rates from 03.00% per 12-month period.
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.
We have a Global network that specializes in Monetization of almost any type of Bank or Financial Instrument worldwide from 5 million to 5 billion Dollars.
Qualifying Instruments
- The instrument needs to be a Cashed 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.
SBLC Monetization / BG Monetization
In order to monetize a SBLC (SBLC Monetization) you must be in possession of the instrument, and it must be paid for prior to monetizing (OBTAIN a Bank Confirmation from issuer saying they are RWA to issue to Lender for monetization).
- 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
MONETIZING BANK GUARANTEES
Bank Guarantees are used for guaranteeing payments in a number of given circumstances. Often referred to as BG’s. Bank Guarantees are worded specifically for the purpose and specifically written to the stated parties thereto. The use of Bank Guarantees is becoming increasingly common, for example in lieu of deposit payments. Applicants may opt to issue a banker’s guarantee instead of parting with cash deposit. They can also be used for offsetting or deferring payments and can be used in intelligent financial structures.
NON-RECOURSE MEANS YOU DON’T HAVE TO PAY IT BACK!!!!
*** Very Important Information - Monetizing Bank Guarantees ***
When Monetizing Bank Guarantees it is CRITICAL you get this right, there are some big traps uninformed customers fall into that cost them a lot of money or the whole deal. Work with BPM Properties Financial Ltd. and we can help you avoid these nasty pitfalls and get your BG issued and monetized seamlessly.
Mistake 1: Buying a BG that is neutered - Some sneaky companies issue neutered BG’s. That is a BG that can only be used for credit enhancement on a company’s books but can never be monetized or traded. It’s a nasty surprise you get when you realize your pristine BG delivered by MT760 to a Monetizer is useless!
Mistake 2: Buying a BG it must say – Transferable or Assignable on it if not it cannot be monetized, if you buy a BG that is leased or and it does not say the word “Transferable or Assignable” on it. You have a worthless piece of paper you can’t use! We offer you “unrestricted beneficiary ownership of the BG for a 12-month term” this gives you full monetization capability for the price.
Mistake 3: Procedures DON’T Match – If the delivery procedures of the BG issuer don’t exactly match with the BG monetized you will never get the BG delivered because the two parties are incompatible with each other. Both parties end up blaming one another and no deal ever gets done.
Mistake 4: The No Bank Play – When your BG issuers’ contract with you includes them sending a MT999 or MT799 from a non-bank entity to the monetizes bank entity. You’ve been screwed. Banks will not reply or communicate with non-Banks or private companies. Therefore, a message sent from a non-bank to a bank is ignored! The issuer then claims they delivered service and keeps your money and the monetizer claims you never communicated with them on a bank-to-bank basis.
Mistake 5: No CUSIP or ISIN Number – Some monetizers will only accept Bank Guarantees with CUSIP or ISIN Numbers. This means they will NOT accept a fresh cut bank guarantee, ONLY seasoned instruments. Seasoned BG’s cost more and generally are only available to be purchased from secondary owners not banks.
Feel free to contact us with any questions you may have regarding purchasing, leasing or monetizing a financial instrument.
Office Hours:
Monday - Friday 04:00 - 15:45
Saturday 04:00 - 08:30
Sunday - CLOSED