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The Standby Letter of Credit and Bank Guarantee is provided by our bank (as the provider) to the beneficiary’s account/ bank and it is transmitted interbank only through SWIFT (MT760). During the lifespan of the instrument, the beneficiary may utilize it for the two main and popular purpose of credit enhancement (raise loan, enhance credit line) or as a payment guarantee (Trade positions of a buy and sell contract for good and/or services to be rendered). At the end of the tenure of the agreement that guided the issuance, the beneficiary is expected to return the bank guarantee to our issuing bank without encumbrances or liens and the beneficiary also has the obligation to indemnify us against any loss incurred against such instrument. In addition, the beneficiary also has the option of extending the contract because our collateral transfer agreement or Deed of agreement always comes with an option of rolls and extension of up to 5 years and in some cases 10 years depending on how strong the beneficiary is placed and our due diligence.  Our Bank Guarantees and Standby Letter of Credit are available from the range of $/€5 million to United States $/€ 20 Billion. Any amount over $/€500 Million is achievable in tranches till the maximum limit is expended. All depends on the intake capacity of the beneficiary/applicant.  Our Bank Guarantee and Standby Letter of Credit is issued from AAA rated banks only and it is widely accepted in all banks in the world with some exception that we may not be willing to send out a SWIFT to some banks/financial institutions based on our previous experience and relationship with such bank/institutions. There is always an option for the applicant/beneficiary to submit their verbiage for review depending on the approval of our bank otherwise, our bank’s standard verbiage will be used in SWIFT transmission of such bank instrument which will be made available in the contract which is usually in the ICC758 (UPC 600) format which is widely accepted for activation of credit line.  Our contract fee is charged at a rate of 5% to 8% and there are variables that determines this which all falls on our due diligence on the beneficiary/receiver and obviously, the contract size also has an effect on the pricing.

All monetization ends up as a recourse loan. With our cash backed Bank Guarantee or Standby Letter of Credit, you are expected to get an 100% LTV because it is cash backed and not asset backed (which has so many variable that has to be considered before determining the LTV by the beneficiary/beneficiary bank of the receiver of such asset backed Bank Instrument), but no bank will give you a 100% LTV except you have an arrangement with them before approaching us for the Standby Letter of Credit or Bank Guarantee. But you can be rest assured to get a maximum value ranging from an 80% to 95% LTV on any Standby Letter of Credit (SBLC) or Bank Guarantee (BG) issued by us. This basically equates to using the Standby Letter of Credit or Bank Guarantee as a collateral for a loan with your financial institution in simple terms.

In conflict to the point raised above, if you are using an intermediary for your monetization, some has structures in place for a fee or interest who can monetize your Standby Letter of Credit or Bank Guarantee for a non-recourse loan that they intend to personally guarantee. This is not a miracle, but with our experience in the industry, some of the power play monetizer have an exit in place that need a paper from a third party for them to enter into a trade that probably makes up to 400% on the paper. This gives them the play-ground to cover the interest on the credit line/recourse loan from the bank, pay you the LTV on the Standby Letter of Credit or Bank Guarantee and still make great profit. Unfortunately, it is not easy to come by such power players.

Such programs never fail because they don’t begin before all actors have been contracted, and each actor knows exactly what role to play and how they will profit from the transactions. A trader who is able to secure this leverage is able to control a line of credit typically 10 to 20 times that of the principal. Even though the trader is in control of that money, the money still cannot be spent. The trader need only show that the money is under his control, and is not being used elsewhere at the time of the transaction.
For Example: Assume you are offered the chance to buy a car for $30,000 and that you also find another buyer that is willing to buy it from you for $35,000. If the transactions are completed at the same time, then you will not be required to “spend” the $30,000 and then wait to receive the $35,000. Performing the transactions at the same time nets you an immediate profit of $5,000. However, you must still have that $30,000 and prove it is under your control.
Confusion is common because most seem to believe that the money must be spent in order to complete the transaction. Even though this is the traditional way of trading – buy low and sell high – and also the common way to trade on the open market for securities and bank instruments.
This is why client’s funds in Private Placement Programs are always safe without any trading risk.

Compared to the yield from traditional investments, these programs usually get a very high yield. A yield of 50%-100% per week is possible.
For example: Assume a leverage effect of 10:1, meaning the trader is able to back each buy-sell transaction with ten times the amount of money that the client has in his bank account. In other words, the client has $10M, and the trader is able to work with $100M. Assume also the trader is able to complete three buy-sell transactions per week for 40 banking weeks (one year), with a 5% profit from each buy-sell transaction:
(5% profit/transaction) (3 transactions/week) = 15% profit/week
Assume 10x leverage effect = 150% profit…PER WEEK!
Even with a split of profit between the client and trading group, this still results in a double-digit weekly yield. This example can still be seen as conservative, since first tier trading groups can achieve a much higher single spread for each transaction, as well as a markedly higher number of weekly trades.