Monetizing SBLC/BG

Monetizing Ground Rules

  • Minimum instrument value considered for monetizing is 150 Million USD/Euro. 
  • Monetizers will NOT consider monetizing financial instruments issued by non-rated banks or banks with a poor rating. In addition, instruments issued by any entity on our "Rejected Issuer" list, will not be considered.
  • Monetizers will NOT make any payment on isntruments for which the purchase or lease fees have anot been fully paid.
  • Monetizers will NOT quote any LTV for any transaction unless they have a completed and acceptable KYC and a copy of the instrument.
  • Monetizers will NOT work to the applicants procedure, nor will they communicate with the applocant directly. All communication must be handled by the Intake Office.
  • Monetizers will NOT release any banking information prior to issuing the monetizing contract.

Non - Recourse Monetizing

       Leased and Owned Instruments

  • The only option to monetize leased banking instruments is Non - Recouse. Since the Lessee does not actually own the SBLC/BG, Full - Recourse monetizing is not an option.
  • Bankers Drafts can only be monetized on a Non - Receourse basis because technically, the draft is still property of the bank.
  • It is getting more and more difficult to get monetizers interested in providing Non - Recourse monetizing for clients who wish to walk away with the money. Providers will, in most cases, only provide Non - Recourse monetizing for clients with instruments from top rated banks. The providers will also want to see the funds resulting from the monetizing placed in a high yield trade program which the monetizer offers.
  • The LTV rage for leased SBLC/BG is 30% - 45%.

Full - Recourse Monetizing

  • The LTV is usually in the 70% range with a 100% buy-back at the end of the term.
  • Ideally, the funds resulting from monetizing, are placed into a high yield  trade program with a monethly yield of approximately 100%.
    The programs ofthe pay out profits on a weekly basis. This would mean the client will have 100% of the SBLC/BG value at his disposal in as little as 30 days after trading begins.

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BPM Financial

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  This page is current. Sunday-24-January-2021


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