What is Bank Guarantee (BG) Monetization And How Do You Monetize a bank guarantee (bg)?
Bank Guarantee (BG) Monetization or monetisation is the process of converting bank instruments such as Bank Guarantee (BG) or sblc into money or legal tender.
Monetizing bank guarantee signifies raising finance or a credit line against it. If you have bank guarantee or a letter of credit, you might be able to monetize it. For bank guarantee monetization and to raise finance against it, it is paramount that the bank guarantee has been specifically formulated for the purpose of raising finance. Bank guarantees framed for other purposes cannot be generally monetized or financed.
Monetizing Bank Guarantee liquidates the bank guarantee and uses them as reinforcement for cash. Almost any bank guarantee all over the world can be used to fund a project. Bank guarantee can be leased or it can be owned.
Artley Finance (HK) Limited are monetizers of bank instruments such as Bank Guarantees (BG) and Standby Letters of Credit (SBLC). We are bg sblc monetizers.
Bank Guarantees (BGs) can be Monetized for:
- Cash
- Placed into Trade Programs (PPP Private Placement Programs)
- or a Hybrid of Immediate Cash and funds in a Trade Program.
Standard Monetization Terms For BG / SBLC.
- BG and SBLC to be monetized must be issued by top 20 AAA rated banks such as HSBC, Citi, barclays, Stanchart etc.
- BG and SBLC from unrated banks cannot be monetized.
- Instruments with a Value OVER 5 Million Dollars
- BG & SBLC MUST have at least 11 months validity prior to expiry
- We prefer monetization transactions of $10 million or more, but we will accept transactions as low as $5 million transaction amount
- Transaction turnaround time between 10 to 14 working days or less
- Exceptions can be made to minimum transaction
- Brokers and intermediaries must have a legally binding agreement
- A broker must be direct to his client. We will not entertain diasy chain of brokers.
Bank Instrument Monetization is a low-cost, low-risk method of project funding or trade finance that monetizes financial instruments by converting them into cash or cash equivalent by liquidating the instruments.
Monetization converts unused assets into cash which can then be used to fund imports, exports, project financing and international trade transactions.
Complete End to End Managed Bank Guarantee Program – We provide a comprehensive, integrated & prestructured Bank Guarantee Issuing and Monetization Program. The most important feature of Artley Finance (HK) Limited managed bank guarantee monetization program is that it is highly pre-structured and transparent. We arrange, provide or issue the bank guarantee and also monetize the bank guarantee. We do everything inhouse using our own resources and contacts to save time, cost and above all, to get good result.
BG SBLC Monetization Process using the swift system.
- After execution of the Bank Guarantee (BG) Monetization contract by both parties, the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
- The Monetizers bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
- On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Bank Guarantee (BG) by SWIFT MT760 to the Monetizers bank.
- Upon receipt, confirmation and delivery of the SWIFT MT760 the Bank Guarantee (BG) Monetizer will within maximum four (4) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
- The Bank Guarantee (BG) Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
BG SBLC Monetization Process using Euroclear:
- After execution of the Bank Guarantee Monetization contract by both parties, the Client will instruct his bank to assign the Bank Guarantee (BG) using FREE Euroclear Delivery to the bank coordinates provided by the Bank Guarantee Monetizer.
- The Clients Banker shall immediately email a certified Euroclear execution receipt of the Bank Guarantee (BG) delivery to the Bank Guarantee Monetizer.
- Upon receipt and confirmation of the Euroclear assignment and delivery, the Bank Guarantee Monetizer will within maximum three (3) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
- The Bank Guarantee Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Estimated Completion Time:
The Monetization process typically takes between 7 to 10 Days after all documents are signed and verified or 3 to 4 Days After Instrument Delivery on the SWIFT or Euroclear Networks.
What is the LTV?
Normally the LTV of bank guarantees from top rated banks such as HSBC, Citibank, Barclays bank etc is 40–50% and for purchased instruments it is between 75–80%. However, at Artley Finance (HK) Limited, we offer the best rates in the industry. All our bank instruments are issued from prime banks such as HSBC Hong Kong, Barclays Bank London, Citi Bank New York, Credit Suisse etc and we offer 80% LTV. So why go elsewhere?
Artley Finance (HK) Limited can arrange and assist clients to issue, arrange, monetize or discount a Non Recourse loan against a Bank Guarantee (BG) or Standby Letters of Credit (SBLC) issued from prime banks. The Bank Guarantees (BG) Monetization arrangement issues Non Recourse funds to the Client shortly after the Bank Guarantee (BG) is delivered to the Monetizer.
Bank SWIFT System - At Artley Finance (HK) Limited, we offer very simple and straightforward Bank Guarantee (BG) Monetization settlement method using SWIFT MT799 followed by SWIFT MT760.
So if you are seriously looking for a Bank Guarantee (BG) then make sure you use a reputable Financial Services Provider with decades of experience such as Artley Finance (HK) Limited, the benefits of following this approach is that you will have peace of mind that your interest would be protected and you surely would be getting the bank financial instrument issued and monetized accrding to contract terms and conditions.
URGENT NOTICE: It will interest you to note that there are only 10 genuine bg bank guarantee providers in the world and Artley Finance (HK) Limited is number one. Contact us if you want to know the list of other genuine bg bank guarantee providers in the world and we will be glad to share that information with you.
These are 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?".
Below is a summary of “BG/SBLC Without Upfront Payment”
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.
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.
Artley Finance (HK) Limited is your trusted partner for secure financial solutions. As a leading SBLC provider, Bank Guarantee (BG) provider, and business loan lender, we specialize in BGSBLC monetization to support global trade and investments.
We deliver Standby Letters of Credit (SBLC) and bank guarantees from top-rated financial institutions, ensuring fast, reliable, and efficient transactions. Our tailored financial services maximize the monetization of your financial instruments while offering hassle-free non-recourse loans to meet your business needs.
Partner with Artley Finance for reliable financial instrument issuance, funding, and monetization services.
Visit www.artleyfinance.com or email us at finance@artleyfinance.com today to learn more about our SBLC, BG, loan services, and monetization solutions!
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