Standby Letter of Credit Provider (SBLC MT760)

By
Property Manager with Kingrise Finance Limited

Who is a Standby Letter of Credit  Provider (SBLC MT760)?

A Standby Letter of Credit  Provider (SBLC MT760) is a financial services provider such as Kingrise Finance Limited that provides standby letters of credit (SBLC) from prime banks like HSBC, Barclays bank, citibank chase bank, bank of America etc.

Kingrise Finance Limited is the leading Standby Letter of Credit Provider (SBLC MT760) in the world.

What Are Standby Letters of Credit?

Standby Letter of Credit also known as (SBLC) is an irrevocable commitment or guarantee of payment by a bank or other financial institutions on behalf of their Client or in favor of the Beneficiary. Very much like Bank Guarantee, a Standby Letter of Credit can be used by Buyer as collateral to secure a Loan or Credit Facility or to make purchase in foreign business transactions. SBLCs are very flexible instruments for all types of business.  It can cover anything from an ordinary guarantee commitment to a more sophisticated financial instrument.

Standby Letter of Credit (SBLC MT760) Provider - Kingrise Finance LimitedStandby Letter of Credit (SBLC MT760) Provider

Standby Letter of Credit (SBLC MT760) Provider

As genuine Standby Letter of Credit (SBLC MT760) Providers, SBLC from Kingrise Finance Limited can be useful to both importers and exporters to buy more goods from foreign producers and manufacturers. Standby Letter of Credit (SBLC MT760) is one of the most sought after tools in foreign trade transactions.

‘Leased’ SBLCs is a term used when a Bond/Security is transferred for certain duration to Client or in favor of the Beneficiary to act as Collateral Security to secure a credit facility or loan. This process is called a Collateral Transfer…

SBLCs are mostly issued to profitable companies with strong balance sheets and a proven trading history; Kingrise Finance Limited being an experienced SBLC provider adopts this process of Collateral Transfer or the Syndicate enrollment to position Client to access these financial Instruments via their Issuer bank platforms, as long as they can afford the interests and costs of issuance.

Click here to contact the Standby Letter of Credit (SBLC MT760) Provider in London, USA, Dubai, Malaysia, Singapore, Switzerland, Germany, Hong Kong or Turkey.

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.

SBLC Monetization – Monetize Bank Instruments Such As BG & SBLC

Kingrise Finance Limited are also SBLC monetizers, we can monetize any bank instrument from rated banks. We cannot monetize bg / sblc from unrated banks because they are unattractive and their value / LTV is very low. So if you want to monetize your instrument to fund your project or for humanitarian projects, make sure that the instrument (BG/SBLC) is from a prime bank.

SBLC monetization is the process of liquidating a standby letter of credit (SBLC) by converting them into cash. As SBLC Monetizers, we monetize Bank Guarantees (BG’s), Stand-By Letters of Credit (SBLC or SLOC), Bank Draft, Medium Term Notes (MTN’s) and some Long Term Note (LTN) for our clients.

So SBLC can be structured to act a a Loan Security. In the event that a Client wants to secure a Loan or funding and have access to an SBLC, we will engage our Lender platform to obtain a Credit Facility. This Facility must be secured and collateralized by a cash backed SBLC. If it does not have a qualifying SBLC then, Kingrise Finance Limited can engage their Issuer bank to set-up Guarantee Facility in favor of clients to act as their Issuer. Therefore, Kingrise Finance Limited can incorporate a Bilateral Funding Program where we can merge services of our Issuers and that of our Lenders to avail Monetized Loan Funding.

NOTE: Qualifying Instruments

  • The instrument needs to be a Asset/Cash Backed Bank Instrument, such as a BG or SBLC.
  • The Bank needs to be a World Top 25 Bank with a “A+Bank-Rating” or better.
  • The instrument must be transferable and will need to be transferred to the lender via MT799 or MT760.

Monetize Bank Instruments – SBLC Monetization Monetization

In order to monetize an SBLC (SBLC Monetization) you must be in possession of the instrument and it must be paid for prior to monetizing (Obtain a Bank Confirmation Letter from your issuer saying they are RWA to issue to Lender Bank for monetization). The Benefits of Monetized funds include

  • Use  Standby Letter of Credit (SBLC or SLOC) as Loan Security
  • Finance Trade Facilities
  • Offset Tax and Debt Liabilities
  • Free-up Locked (or blocked) Funds
  • Create Fixed Returns
  • Verification & Due Diligence Services

Bank Instruments such as Letters of Credit are frequently used but seldom properly understood. Whilst these ‘instruments’ are utilized in conventional trading on a day to day basis, they can also be employed in complex financial structures designed to maximize financial positions and bespoke to each individual requirement.
Through existing credit relationships, Kingrise Finance Limited is able to accommodate bank obligations such as Bank Guarantees, Standby Letter of Credit as well as facilitate credit line and monetization of these Guarantees.

The SBLC may allow the beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond, a key principal with this instrument is bank deal only with documents or good, and the bank do not involve themselves in the commitments or contracts between the two parties directly, the advantage of this system is the bank don’t check the reliabilities of the project. The concern of the issuing bank is the term and the condition of the credit itself. The decision of the Bank Instrument is based entirely on whatever the documents submitted to the bank appear on their face to comply with the term of LC Bank Instrument.

As genuine bank instrument providers, our Global network specializes in the Monetization of almost any type of Bank Financial Instrument worldwide from 5 Million to 5 Billion Dollars. Offering up to 80% of LTV, with 3% APR interest charges due yearly, facility / loan terms up to 10 years.
We offer a fast completion process of between 7 to 14 working days.

BELOW IS THE DESCRIPTION OF LEASE BANK INSTRUMENTS (BG/SBLC/SLOC) 1. Instrument: Fully Cash Backed Bank Guarantee {BG} or StandBy Letter of Credit {SBLC}
2. Total Face Value: USD 2Million (Min) to USD 500m (Max)
3. Issuing Bank: HSBC Hong Kong, Barclays Bank London or any prime Bank.
4. Age: One Year and One Day (with rolls and extensions where applicable)
5. Leasing Price: 4% (+ 2% brokers commission where applicable) 2% broker commission applies to clients that were introduced by brokers
6. Delivery: SWIFT MT-760
7. Payment: MT103 Wire Transfer
8. Hard Copy: Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument

Uses of Standby Letter of Credit (SBLC)

You can use Standby Letter of Credit (SBLC) to guarantee a loanYou can use Standby Letter of Credit (SBLC) in Import / Export Trade finance
Standby Letter of Credit (SBLC) can be used as a collateral for Project Finance Standby Letter of Credit (SBLC) can be Used for Trading purpose (Exemple Trading PPP) Standby Letter of Credit (SBLC) can be Used for Bank DebenturesOther Credit Enhancement: Purchase REO Pool / Real Estate / Businesses and Companies / Foreign Trade

Finding Genuine BG & SBLC Providers

CRITICAL INFORMATION: Banks DO NOT issue Bank Guarantees / Standby Letters of Credit.  Simply put, the bank is the Deliverer of the BG/SBLC instrument. Bank is never the Initiator of the Transaction

How to spot a fake SBLC provider and other Bank Instrument Providers

Organizations trying to “lease” or “buy” bank instruments ensure you are managing genuine, real and performing providers. You have to be very sure that the financial or the bank instrument provider that you are relying on is not a fake one, and they are providing you genuine services. The Fake SBLC provider mostly will give you all kinds of guarantees of a performing SBLC and will tell you all the benefits thoroughly. It is extremely difficult to spot a fake bank instrument provider from a real one and you have to be really attentive towards the details.

However, if you are new to this. Here are a few ways you can spot a fake SBLC provider –

1. DOA with grammar botches, made out of different bits of different kinds of agreements.

2. A few titles ascribed to one gathering: “Renter – the buyer – recipient” across the board contract. “Lessor – Seller – Provider” across the board contract.

3. Non Verifiable information of the instrument supplier. The false website, national telephone numbers obtained from Skype, organizations enlisted in the seaward zone, fake LI profile(s) of the “supplier’s group” and so on.

4. ICBPO to be issued by the Lessee’s bank for the Lessor. This convention is illegal by the vast majority of the world banks on account of the abnormal state of fraud around it. By issuing ICBPO the Lessee’s bank resolves to exchange assets to the Lessor paying little respect to the consequences of the renting exchange.

5. The title or the name of the expense accepting record is different from the title/name of the instrument issuing account. Bonafide Lessors may pick different records to get renting expenses and issue bank instruments however in the event that these records are under the names of different elements, run!I highly recommend you to read  https://kingrisefinance.blog/2020/06/18/how-to-find-genuine-bg-sblc-providers/  so that you will know how to find Genuine BG/SBLC Providers.

These are just a couple of signs to specify… Brokers movement advancing so-called “providers”, before you spend your significant lifetime, cash and vitality to advance the “supplier” you found on the web please make your DD over such a “supplier” and ensure that you are managing the bonafide and evident source. By promoting fake sources, you ruin your notoriety and lose the trust of your customers.

To submit a Standby Letter of Credit (SBLC MT760) request; please complete the application form or you contact us with below information:

Email: info@kingrisefinance.com
Blog: https://kingrisefinance.blog
Website: https://www.kingrisefinance.com

Comments (1)

Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information thanks for sharing.  I hope you have a great day.

Sep 16, 2020 03:05 AM