The Financial Instruments issued by Top Financial Institutions and offered by 3rd party asset Management company / Hedge companies / Rich Uncle (HNI)
List of Bank Securities
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Standby Letter of Credit (SBLC)
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Bank Guarantee (BG)
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Demand Letter of Credit (DLC)
Standby Letter of Credit (SBLC) Validity 12 months - Minimum 5 Million $ to 100 Million $
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The collateral transfer between issuing and receiving banks through banking SWIFT communication.
The borrower / client maintaining Business banking relationship with any bank with a decent credit rating of "A" with SWIFT connectivity between banks - Being the Collateral transfer from third party investor pledges the assets and offer the facility from his own bank where the investor maintain business banking.
The issuing bank charges a service fee of 5% to 12% for each year the financial instrument remains valid, and if the buyer fulfills its obligations before the due date, the bank will terminate the SBLC without any additional charge.
The facility eligible for a borrower / client have a good asset base, profitable audited balance sheet, have a project to execute a business plan, have a initial capital between 5% to 10% of the funds requirements and then.
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Bank Guarantee (BG) Validity 12 Months - Minimum 0.50 Million $ to 100 Million $
Bank guarantees are a useful tool for managing risk in contracts between external parties. They allow small companies to secure loans and conduct business that would otherwise be too risky for their counter parties. Banks charge low fees for providing this assurance, making it an affordable option for businesses looking to grow and expand.
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These Bank Guarantees are issued by Commercial Banks or Top International banks - depends on client requirements
Deferred Letter of Credit (DLC) Validity 6 Months - 0.50 Million $ to 100 Million $
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A letter of credit (LC) is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. It is extensively used in the financing of international trade, where the reliability contracting parties cannot be readily and easily determined. UCP 600 (2007 Revision) regulates common market practice within the letter of credit market, defining a number of terms related to letters of credit which categories the various factors within any given transaction. These are crucial to understanding the role financial institutions play within.