Monetize a Standby Letter of Credit

Description

AltFunds Global can monetize Standby Letters of Credit (SBLCs) that have already been issued by a bank that has a credit rating of A or above.

Qualifications

The minimum amount that AltFunds Global monetizes a funding instrument is ten million ($10,000,000.00) US dollars. The instrument must be:

  • Unencumbered
  • Divisable
  • Monetizable
  • Irrevocable and cash back

Benefits

AltFunds Global assist the client to liquidate the current instrument, and produce net proceeds for the client to use as they see fit.

Process

  1. Participating customers must first schedule a consultation call.
  2. Upon confirmation of the call, the client will receive the initial paperwork.

    •  KYC (Know your client) with a copy of the instrument.

  3. Following the consultation, AltFunds Global will offer the following paperwork: 
    •  A signed fee agreement for services rendered.
    •  Mutual non-disclosure, non-circumvent agreement (NDA /NCA).
  4. The client is then provided with a deed of agreement (DOA) that details the issuer, the monetization fee, broker fees, and closing procedures.
  5. All parties must execute the deed of agreement once it has been signed.

Paperwork

  • KYC (Know your Client Form) with a copy of the instrument

  • Mutual Non-Disclosure Agreement and Non-Circumvent Agreement (NDA/NCA)

  • Fee agreement for services rendered

  • Deed of agreement

Fees

Our fees are 2.5% of the face value of the instrument.

Commission to brokers

0.5% of the face value of the instrument.

Timelines

We can often execute a contract in 7-10 banking days.

Disclaimer

  • We only work with clients who have an instrument that has already been issued by a bank that has a credit rating of A or above.
  • All clients are welcome 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.

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