BG/SBLC Leasing | The Best Option To Get Your Project Funded

How to get private funding for your business?

As an entrepreneur, you should feel a sense of pride in launching a startup, but you can’t expect your venture to take off unless it’s adequately funded. Having enough working capital is critical to the success of your company.

If you’ve been on the lookout for funding for a startup or business project, you should realize that it’s not easy to get funding to bring you to the next milestone. The challenge is that it’s much harder to get your startup funded than it was in the past, simply because there are too many startups competing for the much-coveted funding. Further, investors are setting higher benchmarks for every startup because they want to make sure their capital is invested in a project that has a promising future, as a result of which, stats show that about 7 out of 10 entrepreneurs crash within the first 12 – 15 months of starting their venture, which makes up for 70% of all startups that fail, mainly due to the cash shortage.

Searching for funding for your startup or business project can often be a frustrating experience. This doesn’t, however, mean that you’re out of options to finance the growth of your company or get your project funded.

Click Here To Get HSBC or Barclays Bank BG/SBLC For Trade Finance Or To Fund Your Projects

More capital and financial backing will almost inevitably be a necessity. If you need funding for your startup or business project, you’ve come to the right place. I’m a practicing lawyer with more than 8 years of experience in BG/SBLC leasing transactions and have a good connection with reputable BG/SBLC providers and financiers in the UK and USA. They’ll design a solution that meets your specific business challenges and borrowing needs, and provide you with funding for a variety of projects worldwide. They’re fully aware of the difficulties in obtaining a traditional loan for large projects and are therefore prepared to help entrepreneurs get project funding by way of BG/SBLC leasing. Once a BG/SBLC is issued, it’s delivered to your receiving bank via the Swift protocol of MT760. If a leased BG/SBLC is fully utilized, it can be a perfect fit to get your business off the ground.

Upfront fees for the issuance of BG/SBLC

Upfront fees are always required for the issuance of a BG/SBLC. I’ve been approached by many potential applicants who asked me to help them get a BG/SBLC, but they refused to pay any upfront fees such as a transmission fee and issuance fee. I would say this is unrealistic. Imagine that if everyone didn’t have to pay a penny but could still get a BG/SBLC with a face value of millions of US dollars, there would be no poor people in the world. On the other hand, how can you expect a BG/SBLC provider to pay a transmission fee and issuance fee for you in advance? Likewise, can you request your banker to pay the application fee for you in advance when you apply for a bank loan?

We all know that paying upfront fees is very risky, to safeguard your interest and ease your worries you have to work with genuine bank instrument providers and real bg/sblc providers like Kindrise Finance Limited to give you peace of mind.

This is how to find genuine BG/SBLC Providers

BG/SBLC leasing – a financial tool used worldwide to raise funds

To get started, I need your executive summary (with the use of funds) and a business plan. If proved to be workable, I’ll pass them on to a suitable BG/SBLC provider or financier who’ll assess your specific needs and come up with a plan that matches the funding you need. It could be a business loan or a Banker’s Guarantee / Standby Letter of Credit (“BG/SBLC leasing at competitive leasing price”) which is a financial tool used worldwide to raise funds, be it for monetization or simply as a payment guarantee. Project funding via BG/SBLC leasing has become very popular in the financial market, it appears that the trend will continue.

***The terms such as “BG/SBLC leasing” and “Leased BG/SBLC” are slang and wrong terms to use. The word “leasing” or “leased” in this respect is a misnomer as it’s not possible to actually lease a BG/SBLC in this manner, and in effect no leasing takes place. I use the terms loosely simply because they’re common phrases in the financial market.
Let me intimate you with some of our basic loan and bank instruments procedures/requirements.

  • About Loan:
  1. Interest Rate: 3% per year
  2. Grace Period: 6 months ~ 3 yrs
  3. Repayment Duration: 6 months ~ 30 yrs
  4. No JV & PPP
  5. Commission: 1% broker commission is applicable only when a broker is involved in the deal.
  • About Leasing BG/SBLC:
  1. Verbiage: ICC 458/758 or latest format
  2. Delivery: MT799, 760, & Hard Copy
  3. Fee Payment: 4% + 2%
  4. Payment of Leasing Fee & Commission: Within 21 days

BG/SBLC Procedures:

  1. Deed of Agreement signing by both parties
  2. Lessor issue a Notarized “Corporate Refund Recourse Undertaking” to Lessee
  3. Lessee send “Bank transmission charges” (* Within 3 days)
  4. Lessor deliver “MT799/760 & Hardcopy”
  5. Lessee pays “Leasing Fee & Commission(* 2%)” (* Within 21 days)

Description of Instruments (Lease BG/SBLC):

1. Instrument:                Fully Cash Backed Bank Guarantee {BG} or Standby Letter of Credit {SBLC}
2. Total Face Value:         USD 5Million (Min) to USD 5 Billion (Max)
3. Issuing Bank:             HSBC Hong Kong, Barclays Bank London or any prime Bank.
4. Age:                        One Year and  One Day (with rolls and extensions where applicable) 
5. Leasing Price:            4%  (+ 2% brokers commission where applicable)
6. Delivery:                   SWIFT MT-760
7. Payment:                  MT103  Wire Transfer
8. Hard Copy:                Bonded Courier within 7 banking days.

What are the Differences Between Standby Letters of Credit and Commercial Letters of Credit?

Standby letters of credit and commercial letters of credit are two main documentary credit types used in international trade transactions.

A standby letter of credit is a bank’s undertaking of fulfilling the applicant’s obligations.

In case, the applicant can’t fulfill contractual obligations against the beneficiary of the standby letter of credit, then the beneficiary can apply to the issuing bank for full compensation.

A commercial letter of credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation.

Commercial letters of credit are mainly used as a primary payment method in export and import of the tangible goods in international trade.

Table 1: Differences Between Standby Letter of Credit and Commercial Letter of Credit

BG/SBLC Leasing | The Best Option To Get Your Project Funded
BG/SBLC Leasing | The Best Option To Get Your Project Funded

Common Characteristics of Standby Letters of Credit and Commercial Letters of Credit:

Both standby and commercial letters of credit;

  • are irrevocable and conditional payment promises, which is given by a trusted financial institution mostly by a bank.
  • independent payment mechanisms, whatever contracts they may base.
  • are governed by ICC’s rules, ISP 98 and UCP 600, respectively.
  • have a documentary nature.

ISP 98 – International Standby Practices

ISP 98 is the set of rules that governs standby letters of credit. They have been published by ICC Banking Commission. ISP 98 – International Standby Practices ICC Publication No. 590 , 1998 Edition. ISP 98 is in force as of January 1, 1999

ISP 98 – International Standby Practices is the title of the book that is published by ICC to govern the standby letters of credit transactions (SBLC ).

ISP 98 consists of 76 pages in total. Full details of ISP 98 for ordering considerations are as follows : ISP 98 – International Standby Practices ICC Publication No. 590 , 1998 Edition. ISP 98 is in force as of January 1, 1999.

How to Buy ISP 98?

ISP 98 is both available by e-book format and hard copy. It is sold under online ICC Bookstores. You can buy ISP 98 from this link.

ISP 98 - International Standby Practices

Benefit of ISP 98 – International Standby Practices

ISP 98 International Standby Practices was written exclusively for standby letters of credit.

Prior to ISP 98 standby letters of credit were issued under commercial letters of credit rules. This was not an effective way as standby letters of credit and commercial letters of credit have significant differences with regards to scope and practice.

ISP 98 has been reduced the cost and time of drafting, limit problems in handling and avoid countless disputes and unnecessary litigation that have resulted from the absence of internationally agreed rules on standby letters of credit.

International Standby Practices fills an important gap in the market place.

The 98 Rules in International Standby Practices (ISP98) offer a precise and detailed framework for practitioners dealing with standby letters of credit.

Developed by the Institute of International Banking Law and Practice, endorsed and published by the International Chamber of Commerce (ICC), ISP98 is the standardized text for the use of standbys worldwide.

ISP98 Rules

  • contain precise definitions of key terms such as “original” and “automatic amendment”
  • cover in detail the standby process from “Obligations” to “Syndication”
  • provide neutral rules acceptable in most situations
  • save both time and money in negotiating and drafting standby terms
  • help avoid litigation and unexpected loss
  • propose basic definitions should the standby involve presentation of documents by electronic means
  • provide international standards for the use of this fast growing financial instrument

For further information or any inquiries about how to raise loan, capital, startups, business expansion or project funding via BG/SBLC leasing, please feel free to contact us via Email: info@kingrisefinance.com

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