Who Is A Genuine BG/SBLC Provider No Upfront Fee?
A Genuine BG/SBLC Provider No Upfront Fees is a bank or other financial institutions that can issue a bank guarantee or standby letter of credit (BG/SBLC) free of charge without demanding any upfront fees from the customer. And I can tell you that this is exactly why some BG/SBLC transactions fail? Most BG SBLC transactions fail because of GREED and unworkable procedures.
NEWS FLASH: Artley Finance (HK) Limited is a Genuine BG/SBLC Provider and Standby Letter of Credit monetization company.
So Is A Free BG SBLC Without Upfront Fee Possible?
No, bank guarantees and standby letters of credit (bg sblc) is not free. Banks do not issue bg/sblc for free without upfront fee. ALL banks especially Top 100 banks charge fees to create and transmit the Bank Guarantee and standby letter of credit (BG/SBLC) to a Funder. The Sad Reality is that our industry is full of people that believe the fairy tale that standby letters of credit and Bank Guarantees can be obtained with NO MONEY UPFRONT. The fact is they can’t!
Real World Example
You cannot tell an airline to first fly you to your destination before you pay, it doesn’t work like that. You will first need to purchase an airline ticket before you board an airplane. If I want to travel from Hong Kong to London I have to first buy a plane ticket, no airline will take me to London before I pay. Same scenario is applicable to bank instrument transactions.
The truth is that many people have been scammed in the process of securing a bg/sblc, and as a result of having a bad experience those same people made up an investment decision that they would now only enter a transaction if they did not have to risk any money or put any money up front. This effectively created a rule that prevents them from having ANY success or EVER completing ANY BG/SBLC transaction because without money paid upfront to cover the bank costs, NO deal will ever get concluded!
Many believe they can obtain loans and financial instruments without collateral or upfront fees. However, there is no such thing as free money in the real world. Free Loans, BG/SBLC is just a fantasy as there is no free money anywhere in the world. All legitimate financial institutions, including ours, operate under clear guidelines and policies that ensure the safety and integrity of transactions.
- Why Free Bank Instruments Aren’t Possible:
Banks do not issue guarantees without collateral and upfront fees. These fees cover issuing, advising, legal processes, and more. - Risk Management for Financial Institutions: Banks and financial institutions operate on strict risk management policies. Issuing loans or bank instruments without collateral or fees would expose them to significant financial risk. These safeguards ensure that the institution can recover funds if the borrower defaults. Without such measures, the financial system would become unstable, potentially leading to widespread economic consequences.
- Regulatory Compliance and Legal Requirements: Financial institutions are bound by regulatory and compliance frameworks established by governing authorities. These regulations mandate thorough due diligence and the collection of collateral or fees as part of the process. This ensures transparency and adherence to anti-money laundering (AML) and know-your-customer (KYC) protocols.
VERDICT: There is no such thing as a free BG/SBLC without upfront fee. You will need to pay the bg/sblc fee to get the bg/sblc issued and delivered to you.
What You Must Do To Avoid Being Scammed or Cheated in a BG/SBLC Transaction
When choosing a bg/sblc provider in a transaction, you need to make sure that they are legit, and that they will do what they say they will do. First of all, you should carry out a due diligence on the bank instrument provider to find out if they are legally registered and also check how many years they have been in the business. Personally I wouldn’t trust my money with a new company that is a few years old. I would rather work with a reputable bg/sblc provider that has been providing bank instruments such as bg/sblc for decades.
In moving forward, we need to understand that banks do not advertise SBLC’s as part of their everyday banking products, the reason behind this is simple, banks are not allowed to. Standby Letters of Credit (SBLC) are provided by high net worth clients with a large cash holding in a bank account. These high net worth clients usually have investment portfolios which include hedge funds, private equity, pension funds etc and these individuals can be truly hard to get in touch with, either because they choose to remain anonymous or they are just straight-up busy individuals.
If you are in the market for an SBLC (Standby Letter OF Credit) or BG (Bank Guarantees) then make sure you avoid brokers at all cost. Because many of these brokers are jokers and they are the reason why many clients fail in bank instrument transactions. With a broker the communication is slow because every information / communication must pass through the broker. On top of that, many of them brokers are greedy, they add as much as 3% commission in the deals making the transaction unattractive to most clients. So why waste time with a broker when you can deal directly with bg sblc provider?
So if you are looking for SBLC (Standby Letter OF Credit) or BG (Bank Guarantees) we will advise you to use a reputable Financial Services Provider with years of experience like Artley Finance (HK) Limited, the benefits of following this approach is you know you have peace of mind that your interest would be looked after and you surely would be getting the best deal. For example, As top bg sblc providers, our sblc charge is 4% of the SBLC value, and in the event that the business meets the contractual obligations prior to the due date, the SBLC can be ended with no further charges.
Artley Finance (HK) Limited was incorporated in Hong Kong on 22-SEP-1999 as a loan lender & genuine sblc providers. Our loan interest rate is just 3% annually and you can get loan financing from us with or without security or collateral. The loan term is up to 20 years with a grace period up to 3 years for those in the construction industry.
Our bank instruments, bg and sblc/sloc are issued from prime banks such as Barclays Bank London, Standard Chartered Bank, HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP).
We have been providing these financial services to our numerous customers from all over the world including importers, exporters as well as customers that need credit enhancements or trade finance facilities to execute projects locally or internationally.
Since we now know that a free bg sblc is not possible, let us try to know more about Standby Letters of Credit (SBLC)
What is standby letter of credit (SBLC)
A standby letter of credit (SBLC/SLOC) is a guarantee of payment by a bank on behalf of their client. It is a loan of last resort in which the bank fulfills payment obligations by the end of the contract if their client cannot.
A standby letter of credit can also be abbreviated SBLC or SLOC. A standby letter of credit is different from a bank guarantee.
Types of Standby Letter of Credit (SBLC/SLOC)
Financial standby LOC: An exporter sells goods to a foreign buyer, who promises to pay within 60 days. If the payment never arrives (and the exporter required the buyer to use a standby letter of credit) the exporter can collect payment from the importer’s bank. Before issuing the letter of credit, the bank typically evaluates the importer’s credit and determines that the importer will repay the bank. But if the customer’s credit is in question, banks may require collateral (or funds on deposit) for approval.
Performance standby LOC: A contractor agrees to complete a construction project within a certain timeframe. When the deadline arrives, the project is not complete. With a standby letter of credit in place, the contractor’s customer can demand payment from the contractor’s bank. That payment functions as a penalty to encourage on-time completion, funding to bring in another contractor to take over mid-project, or compensation for the headaches of dealing with problems. This is an example of a “performance” standby letter of credit, and a failure to perform triggers the payment.
Advantages of a Standby Letter of Credit (SBLC / SLOC)
An SBLC helps ensure that the buyer will receive the goods or service that’s outlined in the document. For example, if a contract calls for the construction of a building and the builder fails to deliver, the client presents the SLOC to the bank to be made whole. Another advantage when involved in global trade, a buyer has an increased certainty that the goods will be delivered from the seller.
Also, small businesses can have difficulty competing against bigger and better-known rivals. An SBLC can add credibility to its bid for a project and can often times help avoid an upfront payment to the seller.
The SBLC / SLOC is often seen in contracts involving international trade, which tend to involve a large commitment of money and have added risks.
For the business that is presented with a SLOC/SBLC, the greatest advantage is the potential ease of getting out of that worst-case scenario. If an agreement calls for payment within 30 days of delivery and the payment is not made, the seller can present the SLOC to the buyer’s bank for payment. Thus, the seller is guaranteed to be paid. Another advantage for the seller is that the SBLC reduces the risk of the production order being changed or canceled by the buyer.
Uses of SBLC / SLOC
A standby letter of credit helps facilitate international trade between companies that don’t know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller certain to receive payment, a SLOC doesn’t guarantee the buyer will be happy with the goods. A standby letter of credit is most often sought by a business to help it obtain a contract. The contract is a “standby” agreement because the bank will have to pay only in a worst-case scenario. Although an sblc/sloc guarantees payment to a seller, the agreement must be followed exactly. For example, a delay in shipping or a misspelling a company’s name can lead to the bank refusing to make the payment.There are two main types of standby letters of credit:A financial sblc/sloc guarantees payment for goods or services as specified by an agreement. An oil refining company, for example, might arrange for such a letter to reassure a seller of crude oil that it can pay for a huge delivery of crude oil.Standby letters of credit can help establish trust with your business partners and be a powerful tool to help meet your business goals.
The Difference Between Letter of Credit (LC) and Standby Letter of Credit (SBLC).
Please note that Standby Letter of Credit (SBLC) is different from Letter of Credit (LC).
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the counterparty risk of the buyer paying the seller for goods
The major difference: The ‘Letter of Credit’ and the ‘StandBy Letter of Credit’ are two legal bank documents that are used by international traders. Both these letters are used to ensure the financial safety between the supplier and their buyers. And, SBLC is a type of LC that is used when there is a contingent upon the performance of the buyer and this letter is available with the seller to prove the buyer’s non-performance during the sale.
LC and SBLC are the two financial instruments that are meant to safeguard the financial interests of the international traders i.e. buyers and sellers. It simply means that both these terms are widely useful while making transaction between the two trading parties. These help in giving financial security to both the parties. Also, these contracts are produced in good faith and in both the cases the fund gets mobilized.
Standby Letter of Credit (sblc)
What is SBLC funding or SBLC Financing?
SBLC financing or SBLC funding is the process of using sblc to obtain loan or financing from a bank. SBLC/SLOC financing can also be described as the process of converting a standby letter of credit (sblc / sloc) into cash or legal tender.
What is the LTV (Loan To Value) of a Standby Letter of Credit (SBLC)?
At Artley Finance (HK) Limited, we offer the best rates in the industry. All our standby letters of credit (SBLC) are issued from prime banks and our SBLC LTV is 80%.
TYPICAL HSBC SBLC MT760 VERBIAGE
DEAR SIRS,
IRREVOCABLE BANK GUARANTEE NO ISIN: XXXXXXZ – HSBC HOLDINGS PLC BY ORDER
OF AND FOR ACCOUNT OF (XXXXXXXXXX )
WE HEREBY ESTABLISH
OUR IRREVOCABLE BANK GUARANTEE NO. ISIN: XXXXXXXXXXXXX –
HSBC HOLDINGS PLC IN YOUR FAVOUR UP TO AN AGGREGATE PRINCIPAL AMOUNT OF XXXXXXX DOLLAR (US$ XXXXXXXX) AS SECURITY FOR THE PURPOSE OF THEIR INVESTMENTS, AND AS AN ENHANCEMENT TO THEIR CREDIT FACILITIES TO FINANCE THEIR PROJECTS.
THIS BANK GUARANTEE IS PAYABLE AGAINST YOUR SIGHT DRAFT DRAWN
ON US FOR THE AMOUNT UP TO OF XXXXXXX DOLLARS ( US$ XXXXXX)AND
MARKED WITH THE CLAUSE DRAWN UNDER IRREVOCABLE BANK GUARANTEE NO XX/XXIXXX
DATED ON XXXXXX THIS BANK GUARANTEE IS EFFECTIVE FROM XX/XX/XXXX AND
EXPIRES IN OWN COUNTRY ON XWXX/XXXX AND ALL DRAWINGS UNDER
THIS BANK GUARANTEE MUST BE PRESENTED TO US ON OR BEFORE THE EXPIRY DATE. THIS BANK
GUARANTEE IS TRANSFERABLE, DIVISIBLE AND ASSIGNABLE WITHOUT PRESENTATION
OF IT TO US, AND WITHOUT PAYMENT OF WE HEREBY AGREE THAT ALL
DRAFTS DRAWN ON US AND PRESENTED IN CONFORMITY WITH THE
TERMS OF THIS BANK GUARANTEE SHALL BE DULY HONORED BY US
AND WE SHALL REMIT THE PAYMENT UPON RECEIPT OF
DOCUMENTS COMPLYING WITH THE CREDIT TERMS AND CONDITIONS.
REIMBURSEMENT UNDER THIS BANK GUARANTEE IS SUBJECT TO ICC
URR600. TT CLAIM IS PROHIBITED UNLESS OTHERWISE STATED. THIS BANK GUARANTEE
SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, 2007
REVISION, INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 600 AND SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF OWN
COUNTRY
IN THE EVENT OF ANY INCONSISTENCY, THE LAWS OF OWN COUNTRY SHALL PREVAIL.
IN ACCEPTING THIS BANK GUARANTEE, YOU HEREBY IRREVOCABLY AGREE TO SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF OWN COUNTRY.
FOR AND ON BEHALF OF:
HSBC HOLDINGS PLC 8 CANADA SQUARE, E14 5HQ, LONDON, UNITED KINGDOM.
What Is The SBLC Process? Terms and Procedure for SBLC
Below is the normal procedure for Standby Letter of Credit (SBLC).
Step 1: Application is made to Artley Finance (HK) Limited for opening of a SBLC including but not limited to the following:
1. SBLC application form. (Provided by Artley Finance (HK) Limited upon request)
2. Desired verbiage of SBLC. (If none provided, Artley Finance (HK) Limited will provide its normal SBLC / letter of credit verbiage.
3. SWIFT code and address of beneficiary bank.
4. Know Your Customer (KYC) documents including but not limited to: Passport copy of applicant, proof of address documents such as electricity or water bill, articles of incorporation of applicant company and brief summary, executive summary and/or business plan of underlying transaction.
Step 2: Artley Finance (HK) Limited reviews all documents presented and evaluates acceptability of documents. Artley Finance (HK) Limited then either approves application or denies and shall inform the applicant of such decision.
Step 3: Artley Finance (HK) Limited prepares draft of the SBLC as it is comfortable to issue and forwards to client for approval. All drafts shall be in line with rules and regulations governing the issuance of SBLC.
Step 4: The client approves the draft and:
1. Signs a contract agreeing to the terms and conditions of issuance and issuance charges as negotiated.
2. Artley Finance (HK) Limited issues the invoice for the agreed upon charges.
Step 5: Client makes payment of charges as per agreed upon payment structure.
1. Client shall provide TT/Wire copy of payment made to Artley Finance (HK) Limited account.
2. Artley Finance (HK) Limited shall confirm to client credit of funds upon receipt of funds to Artley Finance (HK) Limited account.
Step 6: Artley Finance (HK) Limited uploads draft to SWIFT system and provides copy to applicant for final approval of message. Upon approval given by applicant Artley Finance (HK) Limited then releases the SWIFT to beneficiary bank coordinates.
Step 7: Copies of released SWIFT are then forwarded to the client via email or hard copy as requested. In case the client is represented by an advisor, then it is forwarded to the advisor only.
Step 8: Any amendments to SBLC are subject to approval of Artley Finance (HK) Limited.
Why Do Some SBLC Transactions Fail??
Below, we’d like to explore the top 5 reasons why people fail in BG/SBLC transactions and how you can avoid them.
1. Customer Procedures: People with little to no experience in bank instrument transactions create complicated or unrealistic procedures and then expect financial instrument providers and banks to accept those unrealistic and unworkable terms. Procedures like “provider moves first” or “SWIFT before fees” are nonstarters and pure joker broker nonsense. Financial institutions adhere to industry-standard practices, and in the finance industry, the funds owner always dictates the terms. Anyone trying to rewrite these rules is unlikely to succeed. You cannot walk into a bank and tell them to give you a loan or bank instrument under your terms, it doesn’t work like that.
2. Bank Payment Undertaking (BPU): Banks do not provide a BPU to enable customers or lessees to obtain a bank guarantee or standby letter of credit (SBLC) without paying upfront fees. In simple terms, banks do not issue BPUs in BG/SBLC transactions. This is a misconception that is being propagated by bank instrument scammers, dubious brokers, and misinformed customers.
A Bank Payment Undertaking (BPU) is a commitment from a bank to pay a specified amount to a seller or beneficiary once certain conditions—such as the delivery of goods or documents—are met. It offers security to both parties in a foreign trade transaction where the buyer and seller may not know each other well. Since banks do not issue BPUs in BG or SBLC transactions, if you encounter anyone discussing BPUs in this context, it’s advisable to be cautious and avoid engaging with them.
3. Irrevocable Conditional Bank Pay Order (ICBPO): Banks generally do not issue “Irrevocable Conditional Bank Purchase Orders (ICBPO)” for a lessor because it would essentially mean the bank is taking on an excessive level of liability by unconditionally guaranteeing a payment on behalf of a depositor, which is not standard banking practice.
As of 2012, the ICBPO has been banned and made illegal by most governments. Traders and bank instrument providers of BG/SBLC who continue to ask for ICBPOs as a form of payment are completely out of touch by seeking a form of financial payment instrument that has been made illegal in ALL countries.
Click here to read our article titled: Top 10 Reasons Bank Instrument (BG/SBLC) Transactions Fail.
If you are one of the customers who contact us with the hope of obtaining a BG or SBLC without spending upfront money, I highly recommend reading our other article titled "Free BG SBLC Without Upfront Fee: Myth or Reality?".
Why Choose Artley Finance (HK) Limited?
Proven Track Record Since 1982
With over 43 years of history, Artley Finance (HK) Limited has built a legacy of trust and reliability in the global financial industry.More Than 98,000 Clients Across 96 Countries
Our extensive portfolio demonstrates our ability to deliver funding and financial solutions successfully to clients worldwide.Results-Oriented Approach
Boasting a 99% success rate, we ensure deals are closed efficiently and effectively, provided they are legitimate, properly documented with a water tight business plan and clear exit strategy.Quick Disbursement
Once all required documentation is in place, funds can be disbursed within just seven business days, ensuring minimal delays.Comprehensive Financial Services
From Bank Guarantees (BGs) and Standby Letters of Credit (SBLCs) to business loans, trade finance and investment solutions, we cover all aspects of financial services.End-to-End Managed Bank Guarantee / SBLC Issuance & Monetization Program
We offer a fully integrated Bank Guarantee Issuing and Monetization Program, ensuring a seamless process for clients seeking secure financial instruments and monetization.Unrivaled Credibility and Authenticity
As a legally registered and highly respected money lender, our reputation for integrity has been earned over decades of service.Inclusive Service for All Races and Religions
At Artley Finance, everyone is welcome, regardless of their background, faith, or beliefs. We foster inclusivity and diversity in all our dealings.Global Reach with Local Expertise
Our operations span more than 80 countries, enabling us to provide tailored solutions for diverse international markets.Brokers Are Protected and Valued
We deeply appreciate brokers and ensure their protection against circumvention. Brokers earn a generous 2% commission for every successful deal.Customer-Centric Focus
We prioritize the needs of our clients, offering personalized guidance and ensuring all transactions are smooth and hassle-free.
Website: https://www.artleyfinance.com
Email: finance@artleyfinance.com
Blog: https://artleyfinancehklimited.wordpress.com
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