Monetization

The answer is YES; it does.

BANK INSTRUMENTS (assets) are of value. It can come under the usage of any individual or company able to monetize it with a credit facility, in turn generating profit – enough to pay for the provider fees, any loan granted to the beneficiary, and monetization cost.

Cherubond Limited have a financial strategy that is well thought via different trading programs, which is the reason they will accept any owned or leased Bank instrument and grant a provision of a Non-Recourse or Recourse loan that will, in turn, pay for the monetization, the loan given to the provider. During this process, they will also make a LOT of money!

Technically speaking, “Banks DON’T issue Bank Guarantees or Standby Letters of Credit” Instead, the bank is the deliverer, not the initiator of the transaction; they CONFIRM their client has sufficient funds. The Bank is just the delivery courier who works for the BG and SBLC Provider, the actual asset owner, asset holder, or asset manager. For example, let’s pretend you use a courier to deliver a parcel to a customer. You are the Provider of the parcel, and the courier is the delivery agent who delivers your parcel to the Receiver. The courier isn’t the Provider of the parcel. They are just the delivery agent whom the Provider uses to send the parcel from the Provider’s location to the Receivers location.

Using the illustration above, banks treat Bank Guarantees and Standby Letters of Credit the same way. The bank serves as the courier and receives a financial order from a supplier to send to the receiver’s bank one of the providers’ assets (BG or SBLC). In other terms, the banks are instead of the courier, becoming the most widely known as MT messages as the Sender and Recipient of SWIFT messages. (If it’s MT760, MT799, and so on).

Apart from receiving fees for “cutting” (initiating) and “delivering” the Bank instrument, the Bank holds no interest in the transaction. As the financial instrument was launched and secured since then against the cash position in the Bank account of the Provider at the issuing Bank, all other responsibility for the asset is theirs.

If a bank wants to raise Capital, it DOESN’T uses BGs or SBLC because the bank either issues:

1. The Bank NEVER uses its cash to secure or encumber a Bank Instrument BG or SBLC. In the Bank, BG or SBLC are secured against client cash accounts of the Provider.

2. BGs and SBLCs are niche market client products instead of Bank products created at high net worth Bank clients’ requests with significant cash holdings at the Bank.

3. Tell the Bank Officer at your local World Top 25 Bank Branch that you want to buy a Leased Bank Guarantee. As BGs and SBLC is NOT a publicly offered Bank product, most will not know what you are talking about. They are only privately available to high net worth Bank clients with having enough funds to cut the instrument against the funds in their Bank account.

4. You need to have an individual Bank account called a custodial account to issue a BG or SBLC. A custodial account is a particular Bank account that can release, receive, and hold financial instruments. Establishing a custodial account at a bank takes three months+ and costs approximately €250,000 to 350,000 Euro during setup. Such accounts are generally made available to the Top 1% of Private Banking clients only. You cannot just walk into a bank and ask to set up a custodial account! Once a client has a custodial account, it can then issue BGs and SBLCs and sell it to any clients not as a bank product but as his own bank instrument as a provider since the bank plays no part of the lease agreement between the provider and the lessor.

It can be hard to get genuine BG / SBLC providers through. The banks do not market BG’s / SBLC’s as their own banking goods, only because they are not authorized to. Bank Guarantees and Standby Letters of Credit are issued in an account at the bank by high net worth clients with substantial capital reserves. Clients of high net worth are typically private equity, hedge funds, pension funds, major companies, etc. Not only is it very challenging to get in contact with providers of BANK INSTRUMENTS, but they are also very stringent, but they also don’t tangle around.

Authentic Providers like ourselves carry out several safeguards, which means that any approved mandate representatives linked to Providers are too strictly followed. This is great news for us because we know that we are carrying clean business, but any company we set up must follow those protocols. Because of the strict rule, Prestige will also let you know what’s necessary, but generally, we’ll ask for POF and BCL to tell you you can pay 10 percent of the bank instrument’s face value. We would like to know that any company that crosses us can pay the lease fee.

Issuing BGs & SBLC requires a very specialist financial skillset. Therefore, there are very few genuine BG or SBLC Providers, and most High Net worth Investors do not have the expertise and time to involve themselves with the issuing process of the bank instrument.

It is a reality that you need the BANK INSTRUMENTS Provider much MORE than they need YOU! Genuine Providers are VERY selective with who they choose to do business with as they have more clients than they need!

High Net Worth corporations are usually the BANK INSTRUMENTS Providers who have other ways of investments available. As the Monetizer fails to perform as per transaction procedures, 80% of BGs and SBLCs provide deliveries to third Party’s Monetizers FAIL.

The Bank Instrument world has many silly investors having no idea about how a bank instrument works and what it is for and mistakenly believe that the BGs and SBLCs fall from heaven for FREE with no Upfront Fees and the world owes them a living.

When a client sends an application for a Bank Guarantee or Standby Letter of Credit, most do not understand how the procedures behind the transaction work. Certain buyers think that there are no fees involved when issuing a bank instrument and presume the SWIFT messaging service is FREE. This is completely FALSE. The banks of both parties communicate using SWIFT messages. Sending a SWIFT message isn’t cheap. These are bank charges that normally cost at least 2% of the face value of a BG or SBLC.

When a corporation finishes the leasing application form for a BG / SBLC, they effectively lend collateral what is technically called a temporary “CTA” (Collateral Swap Agreement). Let’s assume you’re a petroleum refining business trying to purchase oil and working with claim ABCD Oil. You have a deal with ABCD Oil that says you want to buy €100 million worth of oil (you have 1B EURO on your books). You can opt never to use your own bank account and request via your own bank, but rather to rent a Standby Letter of Credit from another provider.

1. There are many ways to use BG’s / SBLC’s, all in the MT760 language. We may issue a BG or SBLC for:

2. Trade and exchange (to buy goods). They could also be used to back up credit lines provided by banks and/or projects finance.

Also, we can issue monetizable cash-backed BG’s / SBLC’s. Even so, to grant the BG / SBLC in favor of the Monetizer, we’ll have to know who the monetizer is to assign the BGs or SBLC in favor of the Monetizer.

You can implement one of two ways to lease a BG / SBLC. One way is to register with your bank for a Standby Letter of Credit or; use a bank instrument provider like ourselves to fill out a DOA (deed of Agreement). Terms and timelines are NOT negotiable. We emphasize that before signing, buyers will fully understand the papers. Double-check your information, be consistent and accurate because it can be an incredibly costly error.