In order to monetize a financial instrument such as an SBLC (Standby Letter of Credit), it must already have been recently issued or is about to be issued. If the issuing bank is better rated, the more interest it will have from the monetizer and the client must have all the required documentation to perform the corresponding verifications. All instruments (SBLC/BG) must be unencumbered and ready to be transferred or ready to be issued to the monetizer directly.
Clients must present a recent and verifiable RWA (Ready, Willing & Able Letter) from the issuing bank and/or a contract with their instrument provider in order to show their capacity to issue an instrument.
The monetizer or capital manager may require costs at its discretion to verify documents and retain insurance policies to protect the operation. In reference to these costs, Wanner Investment Group is not responsible. Your SBLC is transmitted via SWIFT code MT799/MT760 (bank to bank) and in return, a percentage of the face value of the instrument known as the LTV (Loan To Value) is monetized. The funds are transferred to the bank coordinates indicated by the client via MT103 or a paymaster can be requested to demonstrate the operation’s transparency.
What does the LTV (Loan To Value) or the face value percentage that the monetizer offers you in exchange for the financial instrument or loan against it depend on? Mainly on the following factors:
The classification of the bank that issued the instrument. Tier 1 or Top 25/50 banks obtain a higher LTV percentage and are of greater interest to the monetizer.
The face value of the instrument and the terms on which it is issued. The instrument must be in a monetizable condition and have an optimal verbiage.
Consideration should also be given to the time that has elapsed since the date the instrument was issued, or whether it will be issued directly to the monetizer.
Required Documentation for SBLC / BG Monetization
APPLICANT’S CIS
CIS (Company Information Sheet) of the applicant company. Must include a copy of the legal representative's passport and Certificate of Incorporation.
RWA
Recent RWA (Ready, Willing & Able) letter from the issuing bank along with the QR code or barcode so that the monetizer can verify the issued instrument or issuance capacity.
CONTRACTS
supporting the transaction that justify the issuance of the financial instrument (commodity purchase and sale agreement, etc.).
VERBIAGE
of the financial instrument (Standby Letter of Credit - Bank Guarantee). Issued by your instrument supplier.
PROVIDER’S CIS
CIS of the company that will issue the SBLC/BG and the bank coordinates from where the instrument will be issued from.
SBLC-BG
Copy of the issued instrument (Standby Letter of Credit - Bank Guarantee).
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