How long does it take to monetize a SBLC?

Monetizing bank instruments such as an SBLC is the process of liquidating such instruments by converting them into money. It takes approximately 5 to 15 days to monetize an SBLC.

What is SBLC payment?

‘Standby Letter of Credit (SBLC) is a type of letter of credit (LC) where the issuing bank commits to pay to the beneficiary if the applicant fails to make the payment.

What is bank instrument monetization?

Bank Instrument Monetization is a low cost, low-risk method of trade finance that monetizes inactive financial instruments by converting them into cash or cash equivalent by liquidating the instruments.

Is SBLC monetization real?

The Bank SWIFT Network is the Gold Standard that validates that your Leased or Purchased Bank Guarantee (BG) or Stand bye Letter of Credti (SBLC) is real and it provides a respected industry platform where guaranteed settlement can be facilitated.

Can an SBLC be monetized?

Standby Letter Of Credit (SBLC): Yes, we can monetize SBLC. But it is a very discrete process. Only a well-represented client, with experts such as those from Grand City Investment Limited, can receive loan credit facility based on SBLC as collateral.

Is SBLC a financial guarantee?

SBLC was first introduced by the US. Standby Letter of Credit (SBLC/SLOC) is similar to a bank guarantee as it protects the buyer in case of default at the time of payment by covering his/her liability. It works on the principle of uberrimae fidei, which means utmost good faith.

Can SBLC be used as collateral?

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 purchases in foreign business transactions. SBLCs are very flexible instruments for all types of business.

Can a SBLC be monetized?

In order to monetize a sblc (SBLC Monetization) you must be in possession of the instrument and it must be paid for prior to monetizing (Prior to requesting monetization). Monetizing bank instruments is the process of liquidating such instruments by converting them into legal tender.

Can bank guarantee be monetized?

Bank Guarantees imply liquidity. They can also be traded, and can be used to fund projects or monetize assets if they are leveraged on “trading platforms”.

What is monetization of SBLC / SLOC?

Monetization of an SBLC / SLOC refers to the process of making money out of the Bank Instrument (SBLC/BG) after a process of heavy and long reviews/analysis/scoring by the Bank.

Can GF monetize SBLC’s?

GF ’s SBLC’s can generally be monetized at up to 80\%, on face value 100M SBLC/SLOC allowing the client to receive 80M minus the above-mentioned commissions. These funds are returned to the Attorney’s trust account for disbursal. GF able to monetize the SBLC at 80\%, or the client can provide their own monetization.

What does SBLC stand for?

Monetizing a bank instrument such as a Standby Letter Of Credit or a Bank Guarantee (SBLC or BG) means raising finance (or credit line) against it.

Who is responsible for paying off the SBLC?

The monetizer is responsible for paying off the SBLC. This strategy usually generates a lower LTV. For all self-monetized instruments, or fully recourse instruments GF will require that 10\% of the monetization is placed in a GF Trading Program, which GF will manage on the client’s behalf.