Bank Instruments
Introduction
We are one of the leading private providers of bank instruments services for both institutional and individual clients for over a decade. Many banks, credit unions, mortgage companies and special purpose lenders are suffering during these times of economic stress and fractured business models. Most people do not know about Bank instruments like MTN’s, Bank Guarantees (BG’s), Corporate Bonds, SBLC’s or other Bank instruments. All they know is that in the arena of project financing it is getting harder to get a deal funded!
For those reasons… It makes sense to look at alternative forms of funding.
Bank instruments are debt instruments created by large banks and institutions which have high interest rates, and strong value to the holder. The more common bank instruments are Bank Guarantees (BG’s), Standby Letters of Credit (SBLC), and Medium-Term Notes (MTN’s), and they are issued by European and or top banks mostly. Since it is very hard to attain the funds to purchase an instrument in full, many choose to utilize leased bank instruments.
Leasing Instruments is great for this and many others reasons, and has become popular over the recent years. Many clients lease bank instruments to get into private placement programs, secure funding for large real estate transactions, commodities and petroleum, and many other unique funding scenarios.
The vital part is that bank instrument leasing makes it possible to use a small amount of capital to attain a large amount of capital for a period of time. If you have the right opportunity, leased bank instruments can be a perfect fit to get you off the ground.
Important Tips to Note
Even though this might not be a good introduction, let’s be honest: LEASING usually is a frustrating field to work in. WHY? Because clients need the instruments but usually, they do not have what is needed to get them.
Clients/Applicants need Bank Instruments to be used as collateral or to enhance credit facilities but only fully cash backed instruments may achieve that.
We are direct providers of freshly cut bank instruments like BG’s (Bank Guarantee), MTN’s (Medium Term Note), SBLC’s (Standby Letter of Credit) & DPLC’s (Direct Pay Letter of Credit) CD’s (Certificate of Deposit), and just about every other type of instruments available through our network.
Unlike traditional letter of credit, a bank instruments are where the beneficiary obtains payment against papers demonstrating delivery, the SBLC may allow a beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond.
A key principle to remember with the instrument is banks deal only in documents or goods and do not involve themselves in the commitments and contracts between the two parties directly. The concern of the issuing bank is the terms and conditions of the letter of credit itself. The decision to pay by a Bank Instrument is based entirely on whether the documents submitted to the bank appear on their face to comply with the terms of LC bank instruments.
- Bank Guarantee (BG) in US$ or Euros
- Certificate of Time Deposit (CD) in US$ or Euros
- Standby Letter of Credit (SBLC) in US$ or Euros
- Medium Term Notes (MTN’s) in US$ or Euros
- Treasury Bills (T-Bill) in US$ or Euros
- Documentary Letter of Credit (DLC, SLC, LC) in US$ or Euros
- Promissory Notes in US$ or Euros
- Discounting of Bank Instruments
- Bank Guarantee (BG) in US$ or Euros
Proof of funds (POF) and Bank Confirmation Letter (BCL)
We also provide help client in need of Proof of funds (POF) and Bank Confirmation Letter (BCL) for various commodity trade such as crude oil, oil & gas servicing equipment’s, steel, and precious stones etc… Also these services are acceptable in some organizations and countries for import and export trade in opening credit lines with suppliers or manufacturers.
- Import/Export Trade
- Collateral for Project Finance
- Purchase Bank Instrument (Bank Debentures)
- Other Credit Enhancement: Purchase REO Pool/Real Estate/Businesses & Companies
- Standby Letter of Credit (SBLC)
Cash Accounts - Bank Guarantee (BG)
- SWIFT MT799
- SWIFT MT760
Top Money Center Banks: HSBC, Credit Suisse, Deutsche Bank, Standard Chartered Bank and many others
- International Banks: Europe, United States & Asia
- Minimum $2M account size up to $500M
- Month to month account service or 12 months with extensions
- LOANS UNDER $10 MILLION ARE AVAILABLE FOR 4.25% I/O
Bank Guarantees (BG) is negotiable financial debt bank instruments made by a guarantor bank on behalf of the applicant to mitigate risk on behalf of the beneficiary party. It may be used to assist in trade finance, international trade, domestic trade, and various other types of contracts where the backdrop of a vetting third-party (the issuing bank) could be used.
When a bank issues a Letter of Guarantee to a beneficiary bank it looks at the credit worthiness of the applicant, not the transaction at large. Thus, the ability to acquire bank instruments like a BG is largely based on the relationship the bank has with its client.
The BG is very similar to that of a LC in that it guarantees payment on behalf of its client to the beneficiary. However, a BG is usually used in the event there is default. If for instance, a purchaser of goods issues a BG to the seller of goods and if after delivery, payments were not made for some or the entire contracted amount, these bank instruments acts like a draft or check allowing the Beneficiary to cash it in.
Cash Accounts and Instruments to be monetized
We work with providers who will establish a Cash Account or instruments in the client’s name in a top 100 bank to be used for monetizing and trade purposes on behalf of the Client and CCG as a Joint Venture.
Client will put up an joint account etc. and depending on the size of the instrument or cash account the credit cash should be minimum of $350k – $2 million. Once the client has verified the cash account or instrument as being real then process begins.