What is Bank Guarantee (BG) Monetization And How Do You Monetize a bank guarantee (bg)?
Bank Guarantee (BG) Monetization or monetisation is the process of converting bank instruments such as Bank Guarantee (BG) or sblc into money or legal tender.
Monetizing bank guarantee signifies raising finance or a credit line against it. If you have bank guarantee or a letter of credit, you might be able to monetize it. For bank guarantee monetization and to raise finance against it, it is paramount that the bank guarantee has been specifically formulated for the purpose of raising finance. Bank guarantees framed for other purposes cannot be generally monetized or financed.
Monetizing Bank Guarantee liquidates the bank guarantee and uses them as reinforcement for cash. Almost any bank guarantee all over the world can be used to fund a project. Bank guarantee can be leased or it can be owned.
Kingrise Finance Limited are monetizers of bank instruments such as Bank Guarantees (BG) and Standby Letters of Credit (SBLC). We are bg sblc monetizers.
Bank Guarantees (BGs) can be Monetized for:
- Placed into Trade Programs (PPP Private Placement Programs)
- or a Hybrid of Immediate Cash and funds in a Trade Program.
Standard Monetization Terms For BG / SBLC.
- BG and SBLC to be monetized must be issued by top 20 AAA rated banks such as HSBC, Citi, barclays, Stanchart etc.
- BG and SBLC from unrated banks cannot be monetized.
- Instruments with a Value OVER 5 Million Dollars
- BG & SBLC MUST have at least 11 months validity prior to expiry
- We prefer monetization transactions of $10 million or more, but we will accept transactions as low as $5 million transaction amount
- Transaction turnaround time between 10 to 14 working days or less
- Exceptions can be made to minimum transaction
- Brokers and intermediaries must have a legally binding agreement
- A broker must be direct to his client. We will not entertain diasy chain of brokers.
Bank Instrument Monetization is a low-cost, low-risk method of project funding or trade finance that monetizes financial instruments by converting them into cash or cash equivalent by liquidating the instruments.
Monetization converts unused assets into cash which can then be used to fund imports, exports, project financing and international trade transactions.
Complete End to End Managed Bank Guarantee Program – We provide a comprehensive, integrated & prestructured Bank Guarantee Issuing and Monetization Program. The most important feature of Kingrise Finance Limited managed bank guarantee monetization program is that it is highly pre-structured and transparent. We arrange, provide or issue the bank guarantee and also monetize the bank guarantee. We do everything inhouse using our own resources and contacts to save time, cost and above all, to get good result.
BG SBLC Monetization Process using the swift system.
- After execution of the Bank Guarantee (BG) 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 Bank Guarantee (BG) by SWIFT MT760 to the Monetizers bank.
- Upon receipt, confirmation and delivery of the SWIFT MT760 the Bank Guarantee (BG) 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 Bank Guarantee (BG) Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
BG SBLC Monetization Process using Euroclear:
- After execution of the Bank Guarantee Monetization contract by both parties, the Client will instruct his bank to assign the Bank Guarantee (BG) using FREE Euroclear Delivery to the bank coordinates provided by the Bank Guarantee Monetizer.
- The Clients Banker shall immediately email a certified Euroclear execution receipt of the Bank Guarantee (BG) delivery to the Bank Guarantee Monetizer.
- Upon receipt and confirmation of the Euroclear assignment and delivery, the Bank Guarantee Monetizer will within maximum three (3) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
- The Bank Guarantee Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Estimated Completion Time:
The Monetization process typically takes between 7 to 10 Days after all documents are signed and verified or 3 to 4 Days After Instrument Delivery on the SWIFT or Euroclear Networks.
What is the LTV?
Normally the LTV of bank guarantees from top rated banks such as HSBC, Citibank, Barclays bank etc is 40–50% and for purchased instruments it is between 75–80%. However, at Kingrise Finance Limited, we offer the best rates in the industry. All our bank instruments are issued from prime banks such as HSBC Hong Kong, Barclays Bank London, Citi Bank New York, Credit Suisse etc and we offer 80% LTV. So why go elsewhere?
Kingrise Finance Limited can arrange and assist clients to issue, arrange, monetize or discount a Non Recourse loan against a Bank Guarantee (BG) or Standby Letters of Credit (SBLC) issued from prime banks. The Bank Guarantees (BG) Monetization arrangement issues Non Recourse funds to the Client shortly after the Bank Guarantee (BG) is delivered to the Monetizer.
Bank SWIFT System – At Kingrise Finance Limited, we offer very simple and straightforward Bank Guarantee (BG) Monetization settlement method using SWIFT MT799 followed by SWIFT MT760.
So if you are seriously looking for a Bank Guarantee (BG) then make sure you use a reputable Financial Services Provider with decades of experience such as Kingrise Finance Limited, the benefits of following this approach is that you will have peace of mind that your interest would be protected and you surely would be getting the bank financial instrument issued and monetized accrding to contract terms and conditions.
URGENT NOTICE: It will interest you to note that there are only 10 genuine bg bank guarantee providers in the world and Kingrise Finance Limited is number one. Contact us if you want to know the list of other genuine bg bank guarantee providers in the world and we will be glad to share that information with you.
IMPORTANT NOTICE: So many customers are looking for ways to get a BG or SBLC free of charge without spending any money upfront. if you are one of the customers who is looking for a free Bank Guarantee (BG) without advance payments please click here to read our explosive article about free bg bank guarantee without upfront fee.
Also, these are the top 14 reasons why most Bank Guarantee (BG) transactions fail. Please read that article so you will understand why many people Fail in financial instrument transactions.
Bank Guarantee (BG) Monetization Process? How do you monetise a BG Bank Guarantee?
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, 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.