Probably the only way to get access to valid credit enhancement collateral

0 Comments

If your own bank asks you to provide collateral to support your loan request, then Securities Borrowing and Lending is probably the only way to access and benefit from a prime bank instrument.

You will need experts to structure and emit your Prime Bank Instrument in the format of an SBLC, a Standby Letters of Credit or a Bank Guarantee, issued through major world banks to enable liquidity for you if you are qualified.

These collateral Instruments are supported by first class world banks like

HSBC, Deutsche Bank, Standard Chartered Bank, Barclays, UBS, Credit Suisse, Commerzbank, BNP Paribas Bank and JP Morgan Chase.

Any company of substance can be qualified and acceptable.

If your company is in need of additional liquidity, genuine and qualified collateral can be generated for you to trigger a credit line and back up a loan.

This service is available without any front fees for companies of substance, evidencing significant revenues for the past years through audited accounts.

This would be the process:

• Get a Line of Credit confirmed at your own bank to start.
• Apply to qualify and once approved, accepted to contract with the facilitator.
• Your bank provides the essential conditional payment undertaking.
• The bank instrument is sent to your bank to verify and pay the lending fee.
• You draw from your Credit Line and fund your project.

The Bank Guarantee instrument will be valid for 365 days.

During the agreed collateral borrowing and lending time, you will have the unconditional use of the Financial Instrument. It is a valid, fully cash backed guarantee which secures your credit line and allows you to draw funds and finance your project. This fully cash backed, valid collateral service can be renewed on an annual basis.

Fundamental Requirements

If you want to access valid SBLC or BG collateral to back up a credit line, then you will need a bank, or several banks willing to work with you on this. They will have to offer you a credit line you can draw from, once the instrument arrives via SWIFT MT760. The borrowing and lending fee can be paid from that credit and your project can be financed by drawing from that credit line.

You need a bank willing to issue a conditional payment for the borrowing and lending fee.

This can be your own bank, the receiving bank, or a third party bank, regardless where your SBLC or BG is going to be stent to, a solution can be structured for your transaction accordingly. Only if you can get this conditional payment confirmation (the Essential Bank Payment Instrument) from an acceptable bank, you can benefit from this SBLC or BG collateral service.

Time is of the essence in all aspects of this transaction!

The collateral borrowing and lending term expires 15 days prior of the maturity date of the Bank Guarantee or Standby Letter of Credit. At that time you can ask for an extension for another year, or have your bank return the financial instrument unencumbered.

If you feel qualified and have an immediate transaction, please schedule an initial call with one of the experts.

Leave a Reply

Your email address will not be published. Required fields are marked *