Posts Tagged ‘Capital Funding’

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

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.

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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.