MONETIZATION PROGRAM FOR LEASED AND OWNED INSTRUMENTS

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Introducing a Special Non-Recourse Monetization Program for Leased and Owned Instruments from most world Banks including Low Rated and Non Rated Banks. This program will provide a 35 % LTV non-recourse monetization for Bank Guarantees and Stand By Letters of Credit that CAN/MUST be delivered by MT-760.

We have found that the two biggest challenges to the completion of a successful transaction are as follows:

1. Fraudulent Instrument Providers- The number of scam artists and fraudsters that purport to be legitimate Instrument Providers is currently at epic proportions. As a result of this, many well meaning and good faith clients have lost considerable monies to these phony Instrument Providers.

One main scheme of fake providers is to assert to their clients and to the monetizer that they, in fact, did send out a Swift (MT-799 and/or MT-760) when no swift was ever received by the Monetizer’s receiving Bank. This has caused untold delays in ascertaining whether the Swift was ever sent as a detailed search is usually undertaken to find this ‘missing’ Swift. Finally, after a lengthy effort, it is revealed that No Swift was ever sent and the client is left with no instrument and often times, at least Several Hundred Thousand Dollars poorer. In addition, the monetizer’s own relationship at their receiving Bank is damaged due to the fact that the monetizer was working with a Fraudulent Instrument.

As a result of this epidemic of fraudulent instruments, a procedure that our monetizer has put in place requires direct e-mail Banker to banker communication from the Instrument Provider’s Sending Bank’s bank officer to the Receiving Bank’s bank officer stating that the Sending Bank is RWA to issue a BG or SBLC by MT-760. The Bank Officer at the receiving Bank will reply by e-mail that they are RWA to receive the instrument. All e-mail communications must be done on a Banker-to-Banker basis using Bank e-mail addresses. In addition, the Bank contact phone number of the Sending Banker is obtained and the e-mail addresses and Sending Bank Officer’s phone number are validated by calling the Sending Bank’s main number.

For Fresh Cut Instruments we also ask the client to provide a copy of their contract with their Instrument Provider so that we can check the Instrument Provider in our ever growing data base to review any previous experience we have had with this Instrument Provider.

Our experience has been that when an Instrument Provider or client is unable to unwilling to follow this procedure, the likelihood of the instrument being fraudulent is very high and we will immediately pass on the file.

2. Banks inability to send a MT-760; As our program will monetize instruments from Low Rated as well as Non-Rated Banks, we have had extensive experience in monetizing instruments from all kinds of Banks. A main problem that we have faced is the issue of the Sending Bank’s inability to actually send a correct and proper MT-760 to the receiving Bank. This problem has often occurred when a Smaller Sending Bank is using a correspondent Bank to deliver the MT- 760.

As a result, we have developed our own data base of Banks and our past experience with a specific Bank will determine our appetite to receive more paper from a particular institution.

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 Monetising Program Highlights

-$50 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
-5-8 day closing
-85-97% of face value advance

SBLC/BG $10-50 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
-5-8 day closing
-85-97% of face value advance

Case Study-SBLC Monetising or SBLC Monetisation:

If you have a bank guarantee or sblc we can help. In this case study the client needs $50M – $500M to secure the purchase of land needed for a project, real estate project, purchasing of hotel etc. Client has a Cash Backed SBLC from a top 25 bank, an AA rated bank, or EU major bank. Client submits SBLC for monetisation and gets 85% – 97% of the SBLC’s face value.

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