Clients who require SBLCs between $1 million to $25 Billion.
Standby Letters of Credit (SBLC) are one of the most desired funding instruments in the world. Some of the benefits of SBLCs include:
- Provide a guarantee of a bank’s payment commitment to a seller if the buyer–or the bank’s client–defaults on the agreement.
- Increase the assets of a corporation that is about to be listed for sale.
- Provide an opportunity to participate in various private placement programs in a safe way where your capital is locked in your account.
Clients must have a minimum of $115,000 for upfront legal expenses to be paid to law firm, 2% is paid on success and based on face value of SBLC and for Proof of Funds service, and the correct deposit amount for the value of the SBLC. Typically $1.4m USD however can be a smaller deposit but will result in a smaller face value SBLC.
- Clients don’t need to have all the funds to pay for the instrument upfront. Instead, a monetizer will be found for the client who will pay for the instrument upon the instrument being issued – usually within 30 banking days.
- Our issuer will issue SBLCs from the top 30 banks and not from non-name banks that most of our competitors do.
- We have experienced the same service as a client ourselves. Said differently, we’ve had the financial capability of issuing and monetizing a funding instrument of our own using the same provider(s).
This translates into a much higher LTV (Loan to Value) of the instrument than banks that are not categorized as the top 30 banks in the world.
- ‘Participating customers must first schedule a consultation call.
- Upon confirmation of the call, the client will receive the initial paperwork.
• CIS / KYC (Customer information sheet / Know your client).
• A signed fee agreement for services rendered.
• Mutual non-disclosure, non-circumvent agreement (NDA /NCA).
- Once our fee agreement is completed, we will approach the proper law firm(s) to help the client in obtaining:
• Proof of funds (POF) FOR THE FACE VALUE OF THE SBLC being purchased
• Service contract with retainer agreements requiring one of the top 30 banks to issue a standby letter of credit to the law firm..
- Once the law firm(s) have been retained, the client will get a Letter of intent (LOI) from the issuer on the SBLC. The LOI will include the name of the issuing bank, the amount, the language, etc.
- The monetizer’s offer will be obtained for the client and a LOI and agreement will be issued. The LOI will include the name of the monetizer’s issuing bank, the amount, the language, etc.
- Upon the execution of the letter of intent, the SBLC issuer will then issue the instrument to the client (or the monetizer’s bank).
- A minimum of $115,000 for upfront legal expenses needs to be paid to law firms and 2% is paid on success and based on face value of SBLC and for Proof of Funds service.
- Deposit Proof of Funds (please indicate & prove the source of funds).
- CIS / KYC (Customer information sheet / Know your client).
- A signed fee agreement for services rendered.
- Mutual non-disclosure, non-circumvent agreement (NDA /NCA).
- Executive Summary on Use of Funds.
- Upfront retainer fee of $115,000 USD to cover wiring and legal fees.
- Deposit for the SBLC, typically $1.4m but can be less or more
- Upon success 2.5 % of the face value of the instrument for issuing the instrument
- Upon success 2.5 % of the face value of the instrument for monetizing the instrument
- Upon success 2 % of the face value of the instrument for face value proof of funds service to purchase the SBLC
Commission to brokers
- Upon success 0.5 % of the face value of the instrument for issuing the instrument
- Upon success 0.5 % of the face value of the instrument for monetizing the instrument
We can often execute a buy and sell of an SBLC in 90 banking days.
- All clients are welcome (and are encouraged to) bring any business consultant or legal counsel to any of their meetings with AltFunds Global
- The client is fully responsible to cover any legal fees, and tax obligations associated with their transaction.
- Banking days and timelines may fluctuate based on the market & various banking conditions
Ready to begin?
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