Managed Buy & Sell Program

Description

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.

Qualifications

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.

Benefits

  • 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.

Process

  1. ‘Participating customers must first schedule a consultation call.
  2. 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).

  3. 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..
  4. 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.
  5. 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.
  6. Upon the execution of the letter of intent, the SBLC issuer will then issue the instrument to the client (or the monetizer’s bank).

Paperwork

 

  • 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.

Fees

  • 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

Timelines

We can often execute a buy and sell of an SBLC in 90 banking days.

Disclaimer

  • 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?

If you are ready to begin this process and meet the minimum requirements above, we would love to connect and discuss next steps. Click the button below to book a call with one of our team.

Are you ready to take the next step towards achieving your financial requirements?

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