BORROW 100% OF FACE VALUE AGAINST YOUR BG, SBLC/LC, MTN OR SIMILAR QUALIFIED BANK OR INSURANCE GUARANTEE INSTRUMENT AT LIBOR + 8% INTEREST, OR MONETIZE IT UP TO 92% OF ITS FACE VALUE.
LENDERS & MONETIZERS OF BANKING INSTRUMENTS: BG/SBLC/LC/DLC/MTN Lending Programs
If you need to turn a banking instrument into cash or usable collateral, Sandberg can help. As a company helmed by people who have experience in getting projects off the ground, we understand that when opportunities come along for your business, you need to seize them promptly. That’s why we’re happy to serve as a reliable expert lender to monetize your BG, SBLC, LC, DLC, MTN, insurance guarantee, or sovereign guarantee.
SANDBERG OFFERS A NUMBER OF DIFFERENT LENDING PROGRAMS.
What Exactly Do These Loan Programs Mean?
What is a Bank Guarantee (BG)?
A bank guarantee (BG) is a commitment from a financial institution that if the borrower fails to repay a debt they owe to a third party, the institution will cover the cost. It is intended to eliminate the risk factor from a contract between two parties.
What is a Letter of Credit (LC)?
A letter of credit (LC) is a guarantee from a financial institution that the borrower has the capital to pay a third-party seller and if they don’t, the institution will honor the financial obligations of the buyer (using the buyer’s funds).
What is a Standby Letter of Credit (SBLC)?
A standby letter of credit (SLOC or SBLC) is a guarantee of payment to a third-party seller by a financial institution once the terms of the contract are met. If the buyer should fail to deliver payment after the goods or services are delivered, the bank will cover the debt.
So, What Does It Mean To Monetize A Banking Instrument?
Monetizing is the process of liquidating a banking instrument, or converting it to cash or another legal tender.
Now that we understand what the loan programs mean, we can now ask how the monetizer helps…
WHAT CAN BE DONE WITH A MONETIZED BANKING INSTRUMENT?
Once a BG, LC, or other banking instrument is monetized by a lender, it can be used as collateral to fund a business, sponsor trade, buy a contract, or finance a project.
Bank Guarantees Can Be Monetized For:
- Immediate cash
- Funds placed into Trade Programs (Private Placement/High-Yield Investment Programs)
- Combination of cash and funds placed into Trade Programs
Standard Monetization Terms For BG/SBLC:
- BGs and SBLCs to be monetized must be issued by top 25 AAA rated banks (Deutsche, HSBC, Citi, Barclays, StanChart, etc.)
- BGs and SBLCs from unrated banks cannot be monetized
- Instruments with a Value of $100 million minimum
- BGs & SBLCs MUST have at least 12 months validity prior to expiry
- Brokers and intermediaries must have a legally binding agreement
HOW DO YOU MONETIZE YOUR BANKING INSTRUMENTS?
You will provide the BG, SBLC, LC, or other banking instrument to Sandberg and we will serve as your lender. Our lending programs require a value of at least US $100 million to monetize instruments. The interest on your loan will be LIBOR plus 8%. We use the Bank SWIFT Network to validate your banking instrument and deliver it from bank to bank. We have listed our procedure as follows:
REQUIREMENTS AND PROCEDURE:
- US$100 Million minimum. Interest on loan is LIBOR plus 8%
- Client represents that he can supply the Instrument as collateral for his loan.
- Client sends a POF to us via his bank statement showing that he has a REFUNDABLE US$150,000 (min.) Commitment Fee to cover the Processing Costs and Bank Fees which will go into an escrow account.
- We issue our Funding Agreement.
- Client accepts or rejects the Funding Agreement within 10 days. If accepted, Client wires the Refundable Commitment Fee to escrow.
- Within 24 HOURS after the Refundable Commitment Fee has been received in escrow, Lender will issue their Funding Commitment Letter.
- If the Funding Commitment is not issued within 24 HOURS, the escrowed funds will be returned to Client the next business day without deductions of any kind.
- Upon receiving the Funding Commitment Letter, Client sends the Instrument to Lender’s Bank via bank-to-bank SWIFT for verification within 30 days after such acceptance.
- If the Instrument is NOT sent within those 30 days, the Funding Commitment will expire and become invalid and the Commitment Fee will then be deemed to have been fully earned. However….
- If the Instrument IS deemed valid, the Lender will then fund a loan up to 100% of its face value within 72 hours after its receipt and verification, or monetize it up to 92% of its face and…
- The Commitment Fee will be deducted from the closing costs and REFUNDED to the Client.
To start the process, send us a letter indicating that you (or your client) has (or can get) a financial instrument in the amount of $………………… that he would like to use as collateral for a $………………………… loan. He further states that he has and will provide the necessary US$150,000 Refundable Commitment Fee to escrow and sends us his POF to prove that he has the funds.
For more details, call us at +1-340-473-8577 or e-mail to sandbergltd@aol.com.