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Monetizers of Banking Instruments: MBI

Description

Are you a business owner looking to monetize your valuable banking instruments, such as Standby Letters of Credit (SBLCs), Documentary Letters of Credit (DLCs), Bank Guarantees (BGs), IBOEs, or bonds for cash? 

But the need for knowledge and experience in monetizing these instruments and the concerns about fraudulent providers, scammers, compliance, legal issues, and finding a trustworthy and reputable provider have been holding you back.

AltFunds Global is a possible solution. We specialize in monetizing a wide range of legitimate banking instruments. With our experience in the private banking and alternative finance industry, we have the expertise and know-how to help you get the most out of your assets.

Here’s why you should choose AltFunds Global:

  1. Expertise: Our team has years of industry experience and knows the business’s ins and outs. We can help you navigate even the most complex transactions with ease.
  2. Transparency: We believe in being upfront and transparent about our fees and processes. You can trust us to be honest and open every step of the way.
  3. Execution: We pride ourselves on executing transactions quickly and efficiently. You can count on us to finish the job right the first time.

Working with AltFunds Global means partnering with professionals who understand banking instruments and can leverage our experience and banking relationships to turn your valuable banking instruments into cash.

Qualifications

To qualify for our monetization services, the minimum size of the instrument must be $10,000,000.00. The instrument must be issued and registered with one of the top three reputable organizations in the industry, namely Euroclear, SWIFT, or CEDE & Co. This guarantees the credibility of the transaction and ensures that your instrument is recognized worldwide.

If you’re seeking to monetize a bond through AltFunds Global Proprietary Process, you must provide the following information:

  • Demonstrate the current trading status of the bond. If it’s not currently trading, provide a 3rd party report that validates the bond’s value and explains how the bond valuation was obtained.
  • Demonstrate the bond rating, such as AA+, AAA+, etc. It’s necessary to show proof of the rating to verify its credibility.
  • Demonstrate the bond’s liquidity, that is, how quickly the monetizer can convert the bond into cash.
  • Identify where the bond is lodged.
  • Prove that the company that issued the bond has the financial capacity to pay dividends or yield. If the issuer lacks financial ability, the bond could be categorized as a “junk bond” with a high risk and low credit rating. At AFG, we prioritize our client’s financial well-being and do not offer services related to junk bonds.

Providing this information will enable AFG to assess your bond’s value and determine if it meets our criteria for monetization.

If you want to monetize a standby letter of credit (SBLC), AltFunds Global’s Proprietary Process requires you to provide the following:

If the SBLC has already been issued:

  • A copy of the actual Standby Letter of Credit (SBLC)
  • A copy of the Euroclear report showing the Standby Letter of Credit (SBLC) has been issued and posted on Euroclear.
  • Once we have the above documents, we will provide you with AltFunds Global’s proprietary KYC (Know Your Client / Customer Information Sheet), Mutual NDA NCA and our standard Joint Venture (JV) Agreement, which is provided after the consultation call.

If the SBLC has NOT been issued and you would like to get a loan to value (LTV) and closing procedure, we require the following:

  • An RWA (Ready Willing Able) email from the banking officer responsible for issuing the actual SBLC to their client (the actual SBLC provider) saying the banking officer is ready, willing, and able to issue the instrument. The same email should include the language that the SBLC will be issued (often referred to as the DRAFT language of the SBLC). The email should have the banking officer’s email address and a picture of their business card. Please note – that an e-signature is not considered a business card.
  • Proof of funds and Source of funds letter. Please note: Any legitimate bank will ask for the client’s KYC (Know Your Client Form), source of funds, proof of funds, and authority to verify your information with your bank. Anyone asking for a DOA (deed of agreement) is working with an intermediary and is likely to be a fraudulent transaction.
  • Once we receive all of the paperwork, we will verify if the transaction is genuine by contacting the bank (often the bank’s switchboard) and asking to speak to the issuing banking officer for verification to ensure the banker issuing the SBLC is real.
  • Once confirmed, we will provide you with AltFunds Global’s proprietary KYC (Know Your Client / Customer Information Sheet), Mutual NDA NCA and our standard Joint Venture (JV) Agreement, which is provided after the consultation call.

Attention: Please be aware that numerous fraudulent transactions are occurring in the marketplace. For instance, some deceitful providers may falsely claim that they will issue an MT799 when, in fact, MT799 has been replaced by MT759. You must ensure the instrument you provide and the language used are up-to-date with the latest SWIFT codes and standards. If you send us a faulty instrument, please note that all fees associated with it will be charged to you, the client.

Suppose the instrument you want to monetize is a documentary letter of credit (DLC). In that case, AltFunds Global Proprietary Process requires you to provide us with the following:

If you’re looking to monetize a documentary letter of credit (DLC), you must ensure that you provide all the necessary documents and information to the monetizer. At AltFunds Global, we have a proprietary process that requires you to provide us with the following documents:

  1. The buyer’s banking officer’s contact information who has issued the original documentary letter of credit.
  2. A copy of the commercial or proforma invoice for the goods or services shipped or provided.
  3. Bill of Lading or Airway Bill as appropriate, including a packing list detailing the shipment’s contents.
  4. Insurance documents for the shipment.
  5. Inspection documents, if required.
  6. Any other relevant documents required by the terms of the letter of credit.
  7. A written explanation of why you are not going to your bank to monetize the instrument.
  8. A detailed report on all the risks facing the monetizer’s bank (should our bank decide to become the monetizer).
  9. A signed copy of AltFunds Global’s proprietary KYC (Know your Client/customer information sheet) is provided after the consultation call.
  10. A signed copy of AltFunds Global’s JV agreement is provided after the consultation call.

At AltFunds Global, we understand the importance of a smooth and successful monetization process. That’s why we require all the necessary documents and information upfront to ensure the process is as efficient as possible. We also pride ourselves on our proprietary process, developed over years of experience in the industry, to ensure that the monetization process is conducted securely and competently.

We understand that every client’s situation is unique, and we take the time to carefully review each case to provide personalized solutions. Our team of experts is always available to answer any questions and provide guidance throughout the monetization process.

We also believe in transparency and trust. That’s why we provide all the necessary information and documentation upfront, so you can be confident that the process will be carried out professionally and efficiently. Our team of experts is highly experienced in dealing with all types of documentary letters of credit and can provide you with the expertise and support you need to ensure a successful outcome.

In conclusion, if you’re looking to monetize a documentary letter of credit, AltFunds Global’s proprietary process requires you to provide us with all the necessary documents and information upfront. Our team will carefully review your case and provide the best possible solutions to ensure a smooth and successful monetization process. Trust and transparency are at the core of our business, and we pride ourselves on providing the highest level of service to all our clients.

Suppose you plan to monetize any banking instrument other than SBLC (such as IBOEs, Bank Guarantee). In that case, AltFunds Global Proprietary Process requires you to provide us with the following:

  • A copy of the actual banking instrument
  • Credit rating of the issuer
  • Identity what the underlying asset (if applicable) is
  • Any proof that the banking instrument is authentic and genuine (If not, we may require the client to pay our due diligence fees to verify that the instrument is real).
  • An explanation of why the client is not going to their bank to monetize the instrument
  • A signed copy of AltFunds Global’s proprietary KYC (Know your Client/customer information sheet) is provided after the consultation call.
  • After the consultation call, a signed copy of AltFunds Global’s JV agreement is provided.

At AltFunds Global, we prioritize the authenticity and legitimacy of the instruments we work with. Our process is designed to ensure that you receive the total value of your asset without any risk. By meeting these requirements and assuming the banking instrument provided is legit, and all fees paid for, you can rest assured that your banking instrument can be monetized and the total value of the asset unlocked.

Benefits

Suppose you are considering monetizing a banking instrument. In that case, it’s important to note that this process can offer several benefits, including access to liquidity, improved cash flow, diversification, mitigation of risks, and increased flexibility. 

However, suppose you plan to invest the proceeds from a monetized banking instrument into a private placement program (often referred to as a trade). In that case, there are even more benefits to consider.

Here are some advantages of putting the proceeds from a monetized banking instrument into a trade:

  • Increased returns: By investing the proceeds into a trade or a managed buy-and-sell program, you can earn higher returns than leaving the instrument to mature.
  • Diversification: Investing the proceeds into a trade or a managed buy-and-sell program can allow you to diversify your portfolio and reduce risk.
  • Professional management: With a managed buy-and-sell program, you can benefit from professional investment management and expertise, potentially leading to better investment decisions and improved returns.
  • Improved liquidity: Trading or investing the proceeds from the monetization can provide you with improved liquidity, giving you more flexibility to pursue new opportunities or meet your financial needs.
  • Potential tax benefits: Depending on the investment structure and your jurisdiction, investing the proceeds from the monetization may provide you with potential tax benefits.

Suppose you’re considering monetizing a banking instrument or investing the proceeds in a trade or managed buy-and-sell program. In that case, it’s essential to understand the risks and work with reputable professionals. While AltFunds Global is not a licensed dealer broker, the firm has years of experience in this sector and can connect you with trusted law firms or experienced licensed dealer brokers who can guide you through the process.

Partnering with these professionals is crucial to mitigating any potential risks associated with the transaction. They can offer valuable insights and professional advice to help you make informed decisions and ensure smooth execution.

Ultimately, monetizing a banking instrument or investing in a managed program can be a wise investment strategy, but only if you work with trusted professionals to help you achieve your financial goals. Contact AltFunds Global today to learn more about our services and how we can connect you with reputable professionals.

Process & Essential Documentation For Us to Get Started:

If you’re ready to start monetizing with AltFunds Global, you’ll need to provide the following essential documentation.

  • AltFunds Global’s KYC (Know Your Client) Form, a copy of the issued banking instrument and the Euroclear report (if available). This will tailor the process to your specific needs.
  • Sign and complete a Mutual Non-Disclosure Agreement and Non-Circumvent Agreement (NDA/NCA) to protect your interests and ensure confidentiality.
  • Sign and complete a Joint Venture agreement to outline the terms and conditions of the venture.

Once the Joint Venture agreement is signed, pay a 100% refundable upfront fee to a third-party law firm. The fee will be refunded once the instrument is issued to AltFunds Global.

AltFunds Global provides personalized attention to help you achieve your financial goals. 

Contact us today to schedule a consultation and learn more about our monetization services.

After receiving your documents, AltFunds Global will provide a service contract outlining the process. Work with a reputable consulting firm and understand the risks before starting the process. AltFunds Global offers a trustworthy and professional service to help you achieve your financial goals.

Fees

At AltFunds Global, we understand the importance of protecting our relationships with banks, monetizers, and family offices who work with us to monetize banking instruments and other assets. To ensure the credibility of our clients and their instruments, we work with third-party law firms that require a refundable deposit of $200,000. This upfront fee is deposited into an escrow account and helps eliminate fraudulent transactions or fake instruments.

We want you to have peace of mind when working with us. That’s why we take extra precautions to ensure that we only provide legitimate banking instruments to be monetized. Once the instrument has been issued to AFG, AFG’s bank, or monetizer, the deposit is 100% refundable. This ensures that you work with a trustworthy service provider with your best interests in mind.

We offer competitive fees of 2.5% of the face value of your banking instrument for our monetization services. Our team is dedicated to providing you personalized attention and a high level of service to help you achieve your financial goals.

Don’t wait any longer to monetize your banking instruments. We’re here to help you make the most out of your assets! Contact AltFunds Global today to schedule a consultation and learn more about how our monetization services can benefit you.

If you are considering our program, please note that it is not suitable for the following:

  1. Businesses that don’t have a legitimate banking instrument.
  2. Businesses that are “price shopping” or “process shopping” are looking for a provider that will adhere to the businesses’ procedures.
  3. Businesses that want to avoid putting up $200,000.00 into a law firm’s escrow account and get a 100% refund upon monetizing their banking instrument.
  4. Brokers working with a group of brokers have no direct relationship with the actual customer.

Our company values transparency and only works with clients who meet our criteria. If you have any questions about whether your business is a good fit for our program, please don’t hesitate to contact us for more information.

Commission to brokers

If you are a broker and would like to refer clients to AltFunds Global for our monetization services, we offer a commission of 0.5% of the face value of the instrument. The commission will only be paid out after the monetization process has been completed and AltFunds Global’s paymaster has received payment from the bank. Our commitment to working with brokers ensures a mutually beneficial relationship where you can earn a significant commission while helping your clients access the liquidity they need. Contact us today to learn more about our broker referral program.

Timelines

If you’re considering monetizing your banking instruments, you want to work with a provider that values your time. AltFunds Global takes pride in its efficient and speedy execution process, thanks to our experienced team and streamlined procedures. Typically, we can execute a contract within 7-10 banking days.

However, additional banking days may be required to complete the transaction, depending on various factors, such as the monetization banker or law firm’s ability to close the deal, client requirements, and market conditions beyond our control.

We understand that time is of the essence, and we want to assure our clients that we always strive to execute contracts in a timely and efficient manner. Contact us today to learn more about our monetization services and how we can help you achieve your financial goals. We will keep you informed every step of the way, and our team is dedicated to handling your monetization process with the utmost care and professionalism. Trust AltFunds Global to make your monetization process as smooth and efficient as possible.

Disclaimer

Before engaging in any transaction with AltFunds Global, we encourage you to read this disclaimer carefully.

At AltFunds Global, we believe in transparency and aim to provide our clients with clear and concise information. To ensure a complete understanding of the transaction you want help with, we strongly advise you to bring your business consultants or legal counsel to all meetings.

Please note that any bank fees, legal fees, and tax obligations associated with your transaction are your responsibility and not AltFunds Global.

If you’re interested in AltFunds’ experience and services, it’s important to note that we are not a licensed dealer broker in many countries where our YouTube content is consumed, or our books can be purchased.

However, we remain committed to providing exceptional service while complying with securities laws in different jurisdictions.

To ensure compliance with securities laws and maintain our excellent Trustpilot score, AltFunds Global will connect clients to a registered securities dealer broker or a securities law firm located in the jurisdiction where the client conducts their business. This enables us to provide our clients with the best possible advice and support while remaining compliant with all relevant laws and regulations.

At AltFunds, we are dedicated to helping clients achieve their business goals through our experience, resources, and suggested solutions. Our commitment to compliance, transparency, and exceptional customer service sets us apart from the competition. So, if you’re looking for a trusted partner to help you navigate the world of structured financing, look no further than AltFunds.

Frequently Asked Questions

If you’re in the financial industry or seeking financing options, you may have questions about SBLCs, BGs, and monetization. Here are some frequently asked questions and answers to help you understand these instruments and avoid fraud:

SBLC vs. BG: Understanding the Difference

  • SBLCs are typically used to support commercial transactions, while BGs are more commonly used as collateral for loans.
  • Payment: If you hold an SBLC, you can receive payment when you present a demand to the issuing bank. In contrast, with a BG, you can receive demand payment directly from the lender or the beneficiary.
  • Usage: If the primary payment method fails, an SBLC can be used as a secondary payment option. On the other hand, a BG guarantees that the borrower will fulfill their obligations.
  • Whether you have an SBLC or a BG, it is essential to be aware of the potential for fraud when monetizing these instruments. To avoid scams and ensure a smooth process, it’s recommended that you work with reputable and trustworthy monetization providers. Additionally, if you are considering using an SBLC as collateral for a loan, choose a lender who is familiar with the instrument and understands its value.

 

Monetizing SBLC and BG

Monetization is converting a financial instrument, like an SBLC or BG, into cash or credit. However, it’s crucial to choose a reliable and trustworthy monetizer to avoid scams and fraud.

There are several factors to consider when selecting a monetization provider, such as their reputation in the industry, their track record of successful transactions, and their willingness to provide references from past clients. It would help if you also were wary of any monetizers who make promises that sound too good to be true or who pressure you into making a decision quickly.

Before proceeding with any monetization deal, be sure to do your due diligence and thoroughly research the monetizer and their company. This can involve checking their credentials, reading reviews from past clients, and asking for copies of their licenses and certifications.

By taking the time to find a reputable and trustworthy monetizer, you can help ensure a successful and stress-free monetization process for your SBLC or BG.

 

Converting an MT760 to Cash

If you need to convert an MT760 to cash, you can do so by monetizing the instrument through a reputable and trustworthy monetization provider. It’s crucial to ensure the provider’s legitimacy to avoid falling prey to scams and fraud. MT760 is a message format typically used to send a guarantee or standby letter of credit. Monetizing this instrument involves converting it into cash or credit.

 

Loan Against SBLC

If you need financing but don’t have collateral to offer, using your SBLC as collateral for a loan can be an excellent option. By doing so, you can access the funds you need without touching your financial instrument. This type of loan benefits individuals or businesses looking to expand or invest in new opportunities. However, it’s crucial to find a trustworthy lender who can provide the loan terms that suit your needs. Make sure to compare offers and read the terms and conditions carefully before signing any agreement.

 

How to Verify an SBLC

Here are some steps you can take to verify an SBLC:

  1. Check the authenticity and creditworthiness of the issuing bank.
  2. Verify the language and format of the instrument.
  3. Check the authenticity of the signature and stamp on the SBLC.
  4. Ensure that the SBLC complies with the relevant laws and regulations.

It’s important to note that the verification process is critical to safeguarding your investment. While the suggested process is helpful, more is needed. Consider using a comprehensive verification process, which could include hiring a former FBI/CIA person to conduct due diligence, having a securities attorney read all of the required paperwork, and flying down to meet the issuer or monetizer. This way, you can be sure that you are dealing with a legitimate SBLC and not fall victim to any scams or fraud.

 

MT760 Frauds

When it comes to MT760s, scams and frauds are rampant in the market, so it’s crucial to be careful. Choosing a reputable and trustworthy monetization provider with a proven track record is the best way to avoid fraud. Take the time to research the provider thoroughly and read reviews from past clients to ensure that you’re working with a legitimate company. Be bold and ask questions and verify their credentials to protect yourself from scams.

 

SBLC and BG Format

If you’re looking to understand the format of an SBLC or BG, it’s essential to know that the exact format can vary depending on the issuing bank and the transaction’s details. However, many banks use standardized templates for these instruments, such as the International Chamber of Commerce’s Uniform Rules for Demand Guarantees. By familiarizing yourself with these formats, you can better understand the terms and conditions of the instrument and ensure that everything is in order before proceeding with a transaction.

 

I’m looking for more information about SBLCs. How can AltFunds Global help me out?

We have a wealth of knowledge and experience in the field of Standby Letters of Credit (SBLCs) and are dedicated to providing our clients with clear and concise information. To learn more about SBLCs and how they can be used to facilitate international trade or secure financing, check out our informative videos on our YouTube channel. Simply access our channel here to get started today.

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