Bank instrument monetization is a written commitment of a bank that issues it to pay a certain amount of money on behalf of the bank’s client in favor of a beneficiary in case the client/buyer is not able to fulfill its financial obligation to the beneficiary/seller.
Using a Standby LC in business transactions is an indication of good faith and proof of financial credibility and repayment capabilities of a buyer. Standby LC is widely used in commodities trading when it is necessary to buy the goods from a local supplier or foreign exporter. SBLC can be also used as a security to obtain credit lines and is ideal for the company, which plans to expand its business but does not want to utilize its assets.
A POF is a document prepared by a bank instrument monetization that affirms that an individual or business entity has the funds on hand to enter into a given financial transaction. A document of this type is sometimes prepared at the request of a seller who is considering an offer from a buyer. The seller requests the proof through the buyer, who in turn authorizes his or her bank or other institution to provide data that confirms the ability to honor the terms of the transaction.
• We have also developed relationships with some of the banks in the world to Monetize Bank Instruments for clients worldwide by arranging the monetization against owned Bank instrument monetization such as BG’s (Bank Guarantees), LOC’s (Letter of Credit), SBLC’s (Standby Letter of Credit), and other banking and financial instruments.
• This form of financing can be used in combination with our cash-backed stand by letter of credit (SBLC) or Bank Guarantee (BG) Program in order to monetize the newly created document to obtain the right funds for project financing.
Bank instrument monetization is the process of liquidating such instruments by converting them into legal tender. We can monetize or lend on just about any bank instrument to be used for project funding, move them into various trading platforms quickly and easily, as well as creatively incorporating them into financing certain development projects. We can monetize CD’s, SBLC’s, DPLC’s, BG’s and MTN’s. This can be accomplished in 5-15 business days.
Bank instrument monetization or stand by letter of credit is becoming rather common. 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.
The Hanson Group Of Companies 