Steps to a successful transaction.

0 Comments

This summary explanation is available for educational purposes only and explains how Securities Borrowing and Lending is utilized by qualified professionals to generate and provide genuine financial collateral. It is probably the only way that one can expect a third party to provide a valid, fully verifiable cash backed, divisible and assignable Bank Guarantee or Standby Letter of Credit.

FIRST STEP:

A client completes and submits the Business Support Contract

You can directly download the Business Support Contract right here on this page.

SECOND STEP:

The completed contract and submission is assessed by the Intake Officer to determine if a client can be qualified to receive this Prime Bank Collateral Service.

THIRD STEP:

If it can be determined that a transaction can be accepted, the invoice for the commitment or call option fee is issued and it has to be paid directly into the Facilitator’s account.

A Call Option is required to be placed to secure the right for the Investor or Lender to buy the securities at a fixed price within the next 20 days. The Investor buying the securities for a specific transaction does not own the securities at that stage. So placing a Call Option is needed in order to issue the Securities Borrowing and Lending Agreement and for the Investor/Lender to reserve the right to purchase the chosen securities at a certain date and at a certain price. Payment is into the Facilitator’s own account. An easy alternative option is however available.

FORTH STEP:

If a Borrower proves to be of substance, the Facilitator is prepared to advance this on behalf of a client. Receipt of commitment or call option fee automatically causes acceptance to the BSC by the Facilitator.

You may need to place the Euro 30,000 commitment or call option fee if you are not fully qualified and

  • if your business cannot evidence to be of substance and is well established since years
  • if your company does not evidence an established active commercial or financial business and you do not have audited accounts
  • if your audited accounts and annual revenues for the past fiscal years, do not equal to the face value (or more) of the guarantee instrument that is requested
  • if audit was not performed or is endorsed by a major and internationally recognized firm.

FIFTH STEP:

Once a client has committed himself to the transaction, the Facilitator or his securities dealer starts negotiations with standby investors to buy specific securities for this Securities Borrowing and Lending transaction.

SIXTH STEP:

Call option fee is placed on the Securities market reserving these specific securities to back up your transaction for the next 20 days.

Once the securities have been selected, the Call Option fee is placed on the securities market and the Securities Borrowing and Lending Agreement can be issued.

SEVENTH STEP:

The Securities Borrowing and Lending Agreement is issued and sent to the borrower client together with all information to clearly identify the securities that will build the basis on which the BG or SBLC will be issued for the client.

At this stage, the client will then have all details of these securities and can request Bloomberg Printout, Security Card of the Stock Exchange market where the instrument is quoted, Prospectus of the Issuing Program of the Bank to permit the designated Borrower’s Bank Officer to check the availability on Euroclear, Clearstream or the Bloomberg systems.

EIGHTH STEP:

Within 20 days, client’s bank sends the conditional payment instrument to pay for the borrowing and lending fees

If the client’s bank issues or endorses any of the 4 conditional payment methods to pay for the Borrowing and Lending fees, the I C P O, Promissory Note, conditional SWIFT MT103, conditional DLC SWIFT MT 700, and provides a confirmation for the safe return of the collateral after the agreed term, then we can guarantee to deliver.

NINETH STEP:

Issuing and Receiving Bank communicate to fine tune the SWIFT MT760 delivery of the instrument and perform their own due diligence on the parties involved.

TENTH STEP:

Receiving Bank consents to return the SBLC/BG 15 days prior maturity

The receiving bank must undertake the irrevocable commitment to return the instrument unencumbered, free and clear of any debts or claims 15 days prior maturity.

ELEVENTH STEP:

In this Securities Borrowing and Lending transaction, the issuing bank sends the agreed SBLC or BG via SWIFT MT 760 to the receiving bank in line with the Securities Borrowing and Lending Agreement.

You can find out more about Securities Borrowing and Lending on our website.

THE TWELVTH STEP

The Receiving Bank verifies the SWIFT MT 760 SBLC or BG instrument and releases payment for the borrowing and lending fees as to the Securities Borrowing and Lending Agreement.

REMEMBER: These Prime Bank Stanby Letters of Credit or Bank Guarantees are fully cash backed, divisible and assignable, emitted on the basis of very specific highly rated securities purchased for this transaction.

THE THIRTEENTH STEP:

With the instrument in his account, the client triggers cash from his credit line and starts his project. He has the unrestricted use of the collateral as to the Securities and Borrowing Agreement for the coming 350 days.

THE FORTEENTH STEP:

Fifteen days prior maturity, the client is given the opportunity to extend the service for another year. If the client does not need the instrument any longer, the client’s bank returns the SBLC/BG after 350 days.

You can download the original and complete presentation HERE!

We prefer to work with qualified clients. Chances to materialize a transaction can be very high. If a client is not of substance, chances are high that there is a lot of work for all parties involved and in the end, no result. If you would like to discuss options and possibilities you could be qualified for and an immediate transaction, please use the reply form, or call 00353 86 03 25 153. This number also works on Whatsapp, Signal, Telegram and WeChat.

The aim of our Bank Guarantee Collateral Program

Bank Guarantees are powerful collateral for an agreed upon period of time, provided on the basis of collateral borrowing and ...
Read More

Steps to a successful transaction.

This summary explanation is available for educational purposes only and explains how Securities Borrowing and Lending is utilized by qualified ...
Read More

If you are qualified, we can provide all the collateral you need!

  We lend highly rated Securities in the format of an SBLC or BG to back up your Credit Line ...
Read More

Why should a client be qualified to receive a multi million Euro bank guarantee instrument?

The instrument that you probably seek should be valid and fully verifiable, correct? If an instrument is genuine it is ...
Read More

The way you can expect a third party to provide you with a valid, fully verifiable cash backed, divisible and assignable Bank Instrument.

If you are interested to obtain a valid fully verifiable Bank Guarantee instrument from a third party to trigger a ...
Read More

Pennies can help you access valid BG or SBLC collateral – issued for you on the back of highly rated, verifiable and publicly listed Securities

You are in contact with us, probably since the banks you deal with do not provide a bank guarantee service ...
Read More

“Solving financial issues through Credit Enhancement”

You can directly download the Summary of the eBook "Solving financial issues through Credit Enhancement" by Geordon Saraveloz here You ...
Read More

Here is how you can access Credit Enhancement

Credit Enhancement and what is available in your situation?Here you will learn about terms and concepts and available working procedures ...
Read More

The Leverage Effect.

Opportunity explained: The Leverage Effect. In business, credit enhancement is usually applied to make a company more creditworthy to reduce ...
Read More

This is the bank that has never asked for any money in advance!

This is the bank that has never asked for any money in advance! – Isn’t that really good news?   ...
Read More

Prime Bank Instrument without advance fees. This is how we even advance the call option fees for you and issue a Prime Bank instrument for you!

There is a call option fee to be placed for this transaction to block the securities which build the basis ...
Read More

Questions about the Bank Guarantee instrument that you seek

QUESTION: Are you looking for a prime Bank Instrument? An instrument issued by a top World Bank or can we ...
Read More

You expect this Service on your Terms?

Our “proven-way-to-success” terms guarantee a successful closing! If you need funds, you first ask your own bank, obviously. Banks are ...
Read More

Why should a client provide a Mandate and place a retainer to get a bank instrument and credit enhancement service?

Good question - easy to be answererd. I am in this business since over 40 years and my sources are ...
Read More

Prime Bank Guarantee Instruments

We are the experts to structure and emit your Prime Bank Instrument. Our Bank Guarantees and Standby Letters of Credit ...
Read More

SBLC and BG Transactions, Requirements and Considerations

Transaction Have you negotiated a credit line with your bank? We can arrange collateral you may need to trigger and ...
Read More

The Business Support Contract is a no front fee transaction!

This is a no front fee transaction for qualified clients and companies of substance. THIS IS A NO FRONT FEE ...
Read More

POF Proof of Funds and BCL Bank Comfort Letter explained by Geordon Saraveloz

A bank confirmation letter (BCL) or a Proof of Funds letter (POF) is a letter from a bank or financial ...
Read More

BG – Bank Guarantee explained by Geordon Saraveloz

A bank guarantee is a type of financial backstop offered by a lending institution. The bank guarantee means that the ...
Read More

SBLC – Standby Letters of Credit explained by Geordon Saraveloz

A standby letter of credit (SBLC) is a legal document that guarantees a bank's commitment of payment to a seller ...
Read More

LC and DLC – Letter of Credit and Documentary Letter of Credit explained by Geordon Saraveloz

A documentary letter of credit serves as a written promise of payment provided by a buyer to a seller. With ...
Read More

Considerations – Leasing Financial Instruments

Considerations if you are looking into leasing a financial instrumentImagine there is a very wealthy investor with Euro 10 million ...
Read More

Do you need an SBLC or a Bank Guarantee to back up a loan?

You have a bank willing to extend a loan to you? This is how we can help clients with an ...
Read More

A completely “No Front Fee” SBLC/BG Transaction for any Qualified Client based on a Business Support Contract

A completely “No Front Fee” Transaction for any Qualified Client based on a Business Support Contract IF A QUALIFIED CLIENT ...
Read More

Do you have an established business and want to start a project and require a loan for your business?

You obviously will talk to your bank and since they know you, they probably like to work with you. But ...
Read More

Borrowing and Lending of Securities

You now can borrow listed and highly rated securities for your credit enhancement. Obviously, this is not the usual broker ...
Read More

Credit Enhancement and Guarantees

Pre-Financing Guarantee Funding is based on a corporate guarantee service available for qualified ventures with a low budget. This is ...
Read More

Borrowing listed Bonds, MTNs and other Securities

to generate a valid SBLC or BG. Through this concept you can borrow live instruments, listed Bonds, MTNs and other ...
Read More