Monetize Documentary Letters of Credit

Description

A documentary letter of credit is a bank’s promise to pay a seller on behalf of the buyer – so long as the seller has delivered the products as defined in the terms and conditions of the buyer. 

These letters of credit are often used in the area of import and export, where the buyer is required to provide the ability to pay the seller upon the delivery of goods. In order for the buyer to protect themselves from getting the goods they need in the specifications they need it at, the buyer will go to their bank and ask their bank to issue a documentary letter of credit to the seller’s behalf.

Qualifications

Our starting point is instruments over $20,000,000.00 or more, participating clients must have proof of funds and a signed copy of our CIS/ KYC (Customer Information Sheet / Know Your Client Form).

Benefits

It helps buyers demonstrate their solvency, and decreases the risk of non-payment buyers.

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).

  3. Following the consultation, AltFunds Global will offer the following:
    • 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, 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) or CIS (Customer Information Sheet) with a copy of the instrument.
  • Mutual Non-Disclosure Agreement and Non-Circumvent Agreement (NDA/NCA).
  • Fee agreement for services rendered.
  • Deed of agreement.
  • A signed and executed contract along with a copy of the Documentary Letter of Credit (DLC) between the buyer and the seller. The contact information of the banking officer who has or will issue the actual documentary letter of credit.
  • A demonstrated history of the seller – demonstrating years in business, number of litigations against the seller, and any other relevant information.

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

  • All clients are welcome (and are encouraged to) bring any business consultant or legal counsel to any of their meetings with  AltfFunds 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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