Archive for the ‘Finance’ Category

SBLC Monetization/BG Monetization/CD Monetization – Monetize SBLC

Bank Instrument Monetizing

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 (Prior to requesting monetization).

**** If you do not own an instrument we can do that for you. Fill out the online form or call us at 800-346-0136 today.****

First Capital Funding Corporation has developed relationships with some of the Top banks in the world to Monetize Bank Instruments for clients worldwide by arranging the monetization against owned bank instruments such as BG’s (Bank Guarantees), LOC’s (Letter of Credit), SBLC’s (Standby Letter of Credit), CD’s (Certificate of Deposit), DPLC’s (Direct Pay Letter of Credit) and other banking and financial instruments.

This form of financing can be used in combination with our cash backed stand by letter of credit (SBLC) or Bank Guarantee (BG) Program in order to monetize the newly created document to obtain the right funds for project financing

Monetizing bank instruments is the process of liquidating such instruments by converting them into legal tender. We can monetize or lend on just about any bank instrument to be used for project funding, move them into various trading platforms quickly and easily, as well as creatively incorporating them into financing certain development projects. We can monetize CD’s, SBLC’s, DPLC’s, BG’s and MTN’s. This can be accomplished in 5-8 business days.

Monetizing a sblc or stand by letter of credit is becoming rather common and can be done in as little as 4 days. Many people refer to this as sblc funding or sblc financing since you are essentially obtaining cash on the basis of the sblc or bank guarantee.

This process allows you to:

* Monetize instruments for cash
* Monetize instruments for buy/sell platform entry
* Monetize instruments for both cash and buy/sell platform entry

SBLC Monetizing Program Highlights

* $20 Million to $10 Billion USD
* The letter must be from an A or AA rated bank.
* Must contain the following 5 phrases: ”Irrevocable”, “divisible”, “transferable”, “assignable” and “unrestricted”.
* 1-3 year term
* Interest only loan
* 300-450 basis pts over prime rate
* Bank fees apply
* 1-3% of advanced amount required to be as proof of funds as verified by a bank officer.
* 5-8 day closing
* 85-97% of face value advance

SBLC/BG $10-20 Million Program Highlights

* The letter must be from an A or AA rated bank.
* Must contain the following 5 phrases: ”Irrevocable”, “divisible”, “transferable”, “assignable” and “unrestricted”.
* 1-3 year term
* Interest only loan
* 300-450 basis pts over prime rate
* Bank fees apply
* $30-50k required to be as proof of funds as verified by a bank officer.
* 5-8 day closing
* 85-97% of face value advance

To apply simply complete the online form and fill the details of the request in the comments section.

Case Study-SBLC Monetizing or SBLC Monetization:

If you lease a bank guarantee or sblc we can help. In this case study the client needs $25,000,000 to secure the purchase of land needed for a project. Client has a Cash Backed SBLC from Deutsche Bank, an AA rated bank. Client submits SBLC for monetization and gets 97% of the SBLC’s face value minus bank fees of $44k. Terms: 2 year, interest only, 6.75%. Closing time: 4 days.

Click here to visit our main page about Monetizing a SBLC/BG or CD

By Barbara Kiviat

There are plenty of reasons to believe that small businesses aren’t getting the credit they need. In the last three months of 2009, business lending at smaller banks, which tend to cater to smaller companies, was down at a 13% annual rate, according to the Federal Reserve. Not only are loans harder to come by, but they’re also more expensive. That has the potential to slow down economic recovery, since firms that can’t borrow often can’t expand.

Policymakers have responded with a number of programs to boost small-business lending, including an Obama Administration proposal to repurpose $30 billion of bank-bailout money to spur more business lending at community banks.

Talk to business owners, though, and the picture is a lot more complicated. A poll conducted at the end of last year by the National Federation of Independent Business, a small-business trade group, found that companies were overwhelmingly more concerned about slow or declining sales than access to credit. A full 51% of businesses cited sales as their top concern, while only 8% cited the ability to borrow money. An additional 22% cited uncertainty as their biggest worry. In unstable times, even healthy companies are unlikely to want to take on debt.

This is a question that usually starts the conversation for many clients seeking a standby letter of credit (or SBLC). But first lets start with the wiki definition of a stand by letter of credit.

Wikipedia says: A standard, commercial letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking.

The key word being financial institution as the financial institution or bank issuing the stand by letter of credit (SBLC).  The cost of the leasing for this instrument is determined by the bank.  This cost for leasing a block of money in the name of the client  ranges between 5-12%.  Sometimes more and sometimes less.

As with any transaction there is a cost of placing the request with the bank or institution by financial professional, intermediary, financier or broker.  The cost ranges between 1-5% of the stand by letter of credit amount and it is normally paid up front together with the bank lease fee.  This amount is placed in escrow with the Bank’s attorney or escrow service pending the final issuance of the instrument.

Due to its ease and the way transactions are structured, standby letter credit transactions are often the target for scammers who pose as intermediaries asking for the upfront fee without ever intending to place the deal anywhere.

These scammers operate from Africa and some European countries looking to swindle american clients posing as an American company.

The same goes forAmerican scammers who look to take advantage off European clients by requesting an up front fee.

standby letter of credit wiki, standby letter of credit fraud, standby letter credit vs letter credit cost of standby letter of credit, revolving standby letter of credit.

To get more information about obtaining a stand by letter of credit (SBLC) or to submit a request please visit First Capital Funding Corporation SBLC page here.

A topic that has come up the last week is the lack of funds for new or young small business.  Many entrepreneurs are being given so much advice in this economy that often they don’t see how to get going or get working capital for their new business.  Banks and local credit unions are not lending and to go on the internet to look for funds is often a wild proposition.  There is a way and is rather simple.  Is more like a plan.  My advice which you can say it’s based on the plan that I have formulated for my friends and clients is this:

1. Get your business registered-started.  Get your DBA, corporation and internet domain name.  You can get a DBA or “doing business as” registration for a nominal charge.  You can also incorporate, (S, C or LLC) for very cheap.  Get your business on the clock so when lenders ask for how long you have been in business you can say a date other than “Last week”.
2. Get a business checkingsavings account.  This is a minimum requirement for any business.
3. Get a Business Plan. Having one is not necessary but will help you in organizing your business and identifying your market base.
4. Set up a merchant account.  This will help you in taking credit cards as payment which will make it easy to get more business as not all people pay in cash.

After 3 months in business you can use your credit card receivables as the qualifier to get the working capital loan that you need to expand and get rolling.

Granted, the initial cost to get your business started might run you $700-1000, but that will get you going so you can get your customers which in turn will keep you alive for the initial 3 months until you can qualify for the credit card based loan.

The FDIC just came out with their 4th quarter 2009 report and this is some of what is in it:

Banks Report Further Declines in Loan Balances
Total assets of insured institutions fell for a fourth consecutive quarter, declining by $137.2 billion (1.0 percent). During the year, total industry assets declined by a net $731.7 billion (5.3 percent), the largest percentage decline in a year since the inception of the FDIC. Total loan and lease balances declined for the sixth quarter in a row, falling by $128.8 billion (1.7 percent).

The fourth-quarter decline was led by C&I loan balances, which fell by $54.5 billion (4.3 percent); real estate C&D loans (down $41.5 billion, or 8.4 percent); loans to depository institutions (down $21.2 billion, or 15.9 percent); and residential mortgage loans (down $11.2 billion, or 0.6 percent). Credit card balances increased $29.1 billion during the quarter (7.4 percent), but balances in all other major loan categories declined.

Insured institutions continued to add to their securities holdings. Slightly more than half of all insured institutions (52 percent) reported declining loan balances in the fourth quarter.

Total securities increased by $103.7 billion (4.3 percent) during the quarter, with mortgage backed securities rising by $44.8 billion (3.3 percent), and U.S. Treasury securities increasing by $15.9 billion (18.3 percent). During 2009, insured institution securities holdings increased by $465.1 billion (22.9 percent).

You can read the whole report here or download the pdf file.