Hong Kong, June 22, 2020 /BREAKING NEWS/ —
What is Standby Letter of Credit (SBLC) Monetization?
Standby Letter of Credit (SBLC) Monetization or monetisation is a process in which the leased/purchased instrument (BG or SBLC) is being bought at a premium over the purchase or lease price by a monetization company. Normally for top rated bank instruments for leased instruments the LTV for the non-recourse loan is 40–50% and for purchased instruments it is 75–80%.
Kingrise Finance Limited can arrange and assist clients to monetize, discount, or arrange a Non Recourse loan against a Standby Letter of Credit (SBLC) issued from prime banks. The Standby Letter of Credit Monetization arrangement issues Non Recourse funds to the Client shortly after the Standby Letter of Credit (SBLC) is delivered to the Monetizer.
Our SBLC monetization rate is 80% LTV which is the best rate in the industry, and above all, all our sblc are issued by top AAA rated banks such as HSBC Hong Kong, Barclays Bank London, Citi Bank New York, Credit Suisse etc.
Complete End to End Managed Standby Letter of Credit (SBLC) Program – We provide a comprehensive, integrated & prestructured Standby Letter of Credit (SBLC) Issuing and Monetization Program. Thousands of people around the world are frantically trying to find a BG/SBLC Issuer, Monetizer and Funder who will work together.
At Kingrise Finance Limited, we offer very simple and straightforward Standby Letter of Credit (SBLC) Monetization settlement method using the Swift Network System.
Bank SWIFT System – We use the Bank SWIFT Network to have the Standby Letter of Credit (SBLC) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.
The Process & Closing Procedure – SWIFT
- After execution of the Standby Letter of Credit Monetization contract by both parties, the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
- The Monetizers bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
- On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Standby Letter of Credit (SBLC) by SWIFT MT760 to the Monetizers bank.
- Upon receipt, confirmation and delivery of the SWIFT MT760 the Standby Letter of Credit Monetizer will within maximum four (4) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
- The Standby Letter of Credit Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
VERY IMPORTANT INFORMATION: I would like to enlighten our readers that banks do not advertise SBLC’s as part of their everyday banking products, the true reason behind this is simple, banks aren’t allowed to advertise Standby Letters of Credit (SBLC).
Moving forward, I would also like to enlighten our readers that Standby Letters of Credit (SBLC) are provided by high net worth clients with a large cash holding in a bank account. These high net worth clients usually have investment portfolios which include hedge funds, private equity, pension funds etc and these individuals can be truly hard to get in touch with, either because they choose to remain anonymous or they are just straight-up busy individuals.
In order to be sure these genuine providers are dealing with serious prospective buyers of their bank instrument they usually undertake serious checks and balances, this task is usually assigned to reputable Financial Services Providers such as Kingrise Finance Limited. These Financial Services providers such as Kingrise Finance Limited are given the responsibility of making sure a strict screening process is adhered to and only prospective buyers who meet the necessary criteria are allowed access to the Genuine Provider.
So if you are in the market for an SBLC (Standby Letter OF Credit) or Bank Guarantee (BG) then make sure you use a reputable Financial Services Provider with decades of experience like Kingrise Finance Limited, the benefits of following this approach is you know you have peace of mind that your interest would be protected and you surely would be getting the best deal.
URGENT NOTICE: It might interest you to know that there are only 10 genuine sblc providers in the world and Kingrise Finance Limited is number one. Contact us if you want to know the list of genuine sblc providers in the world and we will be glad to share that information with you.
Moving forward, we will like to enlighten you more about Standby Letter of Credit (SBLC).
What is a Standby Letter of Credit (SBLC / SLOC)?
A Standby Letter of Credit (SBLC / SLOC) is a guarantee that is made by a bank on behalf of a client, which ensures payment will be made even if their client cannot fulfill the payment. It is a payment of last resort from the bank, and ideally, is never meant to be used. A standby letter of credit can also be abbreviated SBLC or SLOC. Please be informed that Standby Letter of Credit is different from a Bank Guarantee. You can click here to read the difference between a Bank Guarantee (BG) and a Standby Letter of Credit (SBLC).
Also, a Letter of Credit (LC) is not the same as a Standby Letter of Credit (SBLC)
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the counterparty risk of the buyer paying the seller for goods
The major difference between Letter of Credit (LC) and Standby Letter of Credit (SBLC)?
The ‘Letter of Credit’ and the ‘StandBy Letter of Credit’ are two legal bank documents that are used by international traders. Both these letters are used to ensure the financial safety between the supplier and their buyers. And, SBLC is a type of LC that is used when there is a contingent upon the performance of the buyer and this letter is available with the seller to prove the buyer’s non-performance during the sale.
LC and SBLC are the two financial instruments that are meant to safeguard the financial interests of the international traders i.e. buyers and sellers. It simply means that both these terms are widely useful while making transaction between the two trading parties. These help in giving financial security to both the parties. Also, these contracts are produced in good faith and in both the cases the fund gets mobilized.
What is the LTV (Loan To Value) for Standby Letter of Credit?
At Kingrise Finance Limited, we offer the best rates in the industry. All our bank instruments are issued from prime banks and we offer 80% LTV which you cannot get elsewhere. So why go elsewhere?
What are the fees for Standby Letters of Credit?
At Kingrise Finance Limited, we charge 4% of the SBLC value. In the event that the business meets the contractual obligations prior to the due date, it is possible for an SBLC to be ended with no further charges.
NOTICE: So many customers are looking for ways to get a BG or SBLC free of charge without spending any upfront payments. if you are one of the customers looking for free bg sblc without any advance payments please click here to read our explosive article about free bg sblc without upfront fees.
Also, these are the top 14 reasons why many Standby Letter of Credit (SBLC) transactions fail. Please read that article so you will understand why many people Fail in SBLC Transactions.
Standby Letter of Credit (SBLC) Monetization Process? How do you monetise SBLC?
When it comes to issuing, leasing, funding and monetization of any bank instrument such as bank guarantee, standby letter of credit, bg sblc, getting to the finish line is all that matters and that’s what we excel in at Kingrise Finance Limited. We have been successfully closing deals for over 20 years, show us another company in this industry that can match our record? At Kingrise Finance Limited, we lead while others follows.
Kingrise Finance Limited was incorporated in Hong Kong on 22-SEP-1999 as a Government Licensed Money Lender with CR No.: 0689078. We are leading providers of Business Loan, SME Loans, Project Financing, Recourse Loan, Non Recourse Loans and Bank Financial Instruments such as Standby Letter of Credit, Bank Guarantee, Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee, Bank Comfort Letter, Letters of credit etc.
We have been providing these financial services to our numerous customers all over the world including importers, exporters as well as customers that need credit enhancements or trade finance facilities to execute projects locally or internationally.
Our loan interest rate is just 3% annually and you can get loan financing from us with or without security or collateral. The loan term is up to 30 years with a grace period up to 3 years for those in the construction industry.
Our bank instruments, bg and sblc/sloc are issued from prime banks such as Barclays Bank London, Standard Chartered Bank, HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP).
Why Choose Us?
- Fast Turnaround
- Best Top Rated Banks
- Competitive Low rates
- No prepayment penalty
- 2 Days for Commitment
- Extremely Satisfied Clients
- WE KEEP OUR PROMISE
- 20 Years of Experience & Trust
- No Personal Collateral Required
- Solutions for every customer & every industry.
- Loan amounts from $1 million to over $500 million
- Fast Approvals & Fast Funding- Closing in as little as 5 days
BROKERS: We welcome new brokers who are direct to their clients. New brokers are welcomed and are rewarded with 2% commission on every deal they bring to us.
Kindly contact Us today for all your funding needs, including business loan, sme Loans, project financing, bank instruments (Bank Guarantee, Standby Letter of Credit, Letter of Credit) | BG|CD|BD|DLC|BCL|SBLC|SLOC.