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What is an SBLC?

Secured Cash Back SBLC

Standby Letters of Credit (SBLCs) offer several advantages for international trade, both in secured cash back and non-cash back scenarios. Here's a breakdown of those advantages:

  • Financial Security Provides a guarantee to the beneficiary (typically the seller) that they will receive payment, enhancing trust in transactions.

  • Reduced Risk: Minimizes the risk of default from the buyer, as the SBLC can be drawn upon if the buyer fails to fulfill their payment obligations.

  • Facilitates Financing: Can be used as collateral for securing loans or lines of credit, improving liquidity for both parties involved.

  • Negotiable Instrument: The SBLC can be transferred or assigned to another party, providing flexibility in financing and payment arrangements.

  • Lower Costs: Generally lower fees than traditional letters of credit, making them a cost-effective option for businesses.

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                                                          Minimum Face Value 5 Million USD & Above 

Non-Cash Back SBLC

  • Operational Flexibility: Non-cash back SBLCs often require no upfront cash collateral, allowing companies to use their capital for other operational needs.

  • Improved Cash Flow: Since no cash is tied up, businesses can maintain better cash flow, using funds for growth and expansion rather than securing payment guarantees.

  • Wider Market Access: Companies can engage in international trade with partners who may require more assurances, thus opening up new market opportunities.

  • Enhanced Creditworthiness: Holding an SBLC can enhance a company’s credit profile, potentially leading to better financing terms with banks and other financial institutions.

  • Regulatory Compliance: In some cases, SBLCs can help meet regulatory requirements for international transactions, ensuring compliance with local laws and regulations.

                                                  Minimum Issuance 0.50  Million USD to 50 Million USD 

                                                 Issuing Banks - Subject to County specific / Availability 

  1. Asia Pacific Investment Bank              

  2. BNP Paribas SA*                                                  

  3. Deutsche Bank AG*                                          

  4. J P Morgan Chase Bank*  

  5. CITI Bank NA*                                                          

  6. Society Generale*                                            

  7. Royal Bank of Canada*

  8. UBS Group AG*   

  9. UBB Investment Bank        

  10. ACE Investment Bank      

  11. Suisse Bank  PLC                                                    

  12. HSBC Bank PLC*                                                    

  13. Barclays Bank PLC

Key features of Jade Corporate Advisors Collateral Transfer Fees, Costs & Charges:

  • No upfront or advance charges

  • No Obligation Terms Offered

  • No fees or charges to Brokers

  • 100% Client Confidentiality

**We want to deal with direct clients only**

How SBLCs Work for Loan Collateralization

  • Issuance: A borrower requests an SBLC from their bank, which acts as the issuer. This SBLC guarantees payment to the lender (beneficiary) in case the borrower defaults on the loan.

  • Collateralization: The SBLC serves as collateral for the loan. Instead of using cash or physical assets, the lender can rely on the SBLC as a security instrument.

  • Draw Mechanism: If the borrower fails to meet their repayment obligations, the lender can draw on the SBLC to recover the owed amount.

Benefits of Using SBLCs for Loan Collateralization

  • Improved Credit Access: Borrowers can secure loans without needing to liquidate assets or provide cash collateral, making financing more accessible.

  • Increased Liquidity: Businesses can maintain their cash reserves, using them for operational needs rather than tying them up as collateral.

  • Risk Mitigation for Lenders: The SBLC reduces the lender's risk by providing a guarantee of payment, enhancing confidence in extending credit.

  • Flexibility in Terms: SBLCs can be negotiated and structured to suit both parties’ needs, potentially leading to more favorable loan terms.

  • Creditworthiness Enhancement: Having an SBLC can improve a borrower's credit profile, possibly leading to better interest rates and terms on loans.

  • Cost-Effectiveness: Fees for SBLCs are generally lower than those for traditional collateral arrangements, making them a more economical choice for securing loans.

Jade Corporate Advisors Private Limited is a premier global consulting firm based in India, offering a comprehensive suite of services designed to help businesses achieve their strategic, financial, and operational goals. With a team of seasoned professionals, we specialize in capital raising, investment banking, project financing, and strategic advisory services tailored to meet the unique needs of corporate clients, project owners, and entrepreneurs worldwide.

Our expertise spans across key areas including Capital Raising, Investment Banking, Business Plan and Feasibility Studies, Project Report Consulting, Debt and Equity Financing, Private Equity and Venture Capital services, and more. With a deep understanding of international trade, financial instruments, and virtual CFO services, Jade Corporate Advisors ensures your business receives the strategic guidance required to thrive in the global marketplace.

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At Jade Corporate Advisors, we provide end-to-end services for capital raising and investment banking, helping businesses secure the financing they need to fuel growth, expansion, and innovation. Our services include:

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We understand the importance of a well-structured project report for securing funding and ensuring the successful execution of business initiatives. Our services include:

Feasibility Studies & Business Plans: Crafting detailed feasibility studies and comprehensive business plans that highlight the potential for success and provide clear financial projections.

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Our strategic advisory team acts as a bridge between project owners and financial institutions, providing expert guidance on raising capital and securing financing. We offer:

Project Finance Assistance: Supporting businesses through the complexities of obtaining project finance, developing financial structures that meet the requirements of investors and lenders.

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Our experts assist businesses in navigating the complexities of international trade, ensuring they comply with regulations and optimize their global operations. Our international trade services include:

Trade Compliance & Regulations: Helping businesses understand and comply with international trade regulations, tariffs, and tax requirements.

Cross-Border Business Strategy: Offering strategic advice on expanding into new international markets, optimizing global supply chains, and managing cross-border risks.

                                                                                                                Virtual CFO Services

Jade Corporate Advisors offers Virtual CFO services to help businesses manage their financial operations efficiently without the need for a full-time CFO. Our Virtual CFO services include:

Financial Planning & Reporting: Providing comprehensive financial planning and reporting services to ensure businesses meet their financial goals and adhere to regulatory requirements.

Cash Flow & Risk Management: Assisting businesses in managing cash flow, optimizing working capital, and identifying and mitigating financial risks.

Strategic Financial Decision-Making: Offering expert advice on business strategy, mergers, acquisitions, and capital raising to drive sustainable growth.

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The information provided above is for general informational purposes only and should not be construed as legal, financial, or professional advice. You should consult with qualified TAX professionals AND LEGAL advisors regarding your specific circumstances before making any decisions or taking any actions related to international funding, legal matters, or tax compliance. The accuracy, completeness, and adequacy of information provided cannot be guaranteed, and no liability is accepted for any errors or omissions in the content. Reliance on any information provided is solely at your own risk.

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Please note that any bank fees, legal fees, Security Deposit, and tax obligations associated with your transaction are your responsibility, not Jade Corporate Advisors Private limited / I-Cash Fintech. We recommend that you consult with a professional advisor before making any financial decisions. By using our services, you agree to these terms and conditions

Jade Corporate Advisors Private Limited is a management consulting firm that offers digital introduction services for international banking and financial businesses, which include banks, financial institutions, corporate services, equity investors, PE, venture capital, angel networking, and more. Please note that we are not a registered broker-dealer and do not offer investment advice or advice on raising capital through a securities offering. We do not recommend any investor make an investment in a particular company or suggest any company offer securities to a particular investor. We do not take part in the negotiation or execution of transactions for the purchase or sale of securities and do not have possession of funds or securities. Jade Corporate will not enter into an investor-borrower agreement, as our services include introducing borrowers to prospective investors. The client should review the terms and conditions of the principal company and take the appropriate decision to accept or decline the terms and conditions. We collect our success fee on each successful closure of the deal.

Disclaimer: We are a Management Consultancy based in India, offering expert guidance and services tailored to meet the needs of modern enterprises across 160+ countries.

Important Notice: Payments for our services will only be accepted under the names Jade Corporate Advisors Private Limited and I-Cash Fintech. All payments must be made via a Current Account through NEFT, IMPS, RTGS, or recognized cross-border platforms, and only against our official invoice. Please note, we do not accept payments through personal accounts or under any other names.

 

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          Registered in India CIN : U70200TN2023PTC165917

          Global Business Identifier - Dun & Bradstreet  D & B D-U-N-S Number : 64-417-8211

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          Email : ganesh@rupeejunction.com

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