Bank Instruments such as Letters of Credit and Bank Guarantees 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, we are able to accommodate bank obligations such as Bank Guarantees, Standby Letter of Credit as well as facilitate credit line and monetization of these Guarantees.
Our Global network that specializes in Monetization of almost any type of Bank or Financial Instrument worldwide from 5 Million to 5 Billion of Dollars. Offering up to 95% of Bank Instrument value, with 03.00% APR interest only charges due yearly, facility / loan terms up to 60 months.
We offer non-recourse loan with fast completion process of 7 working days.
Standby Letter of Credit / SBLC Provider
HELIOS is one of the top private providers of Standby Letter Of Credit (SBLC), Bank Guarantee, (BG), Monetization.
A Standby letter of credit also known as (SBLC) is an irrevocable commitment or guarantee of payment by a bank 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 business transactions. SBLCs are very flexible instrument for all types of business. It can cover anything from an ordinary guarantee commitment to a more sophisticated financial instrument.
‘Leased’ SBLCs is 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.
As SBLCs are mostly ever issued to profitable companies with strong balance sheets and a proven trading history; HELIOS 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.
HELIOS also monetizes SBLC; as SBLC can be structured to act a a Loan Security. In the event that 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 does not have a qualifying SBLC then, HELIOS can engage their Issuer bank to set-up Guarantee Facility in favor of client to act as their Issuer. Therefore, HELIOS 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/BG 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 Bank Instruments as Loan Security
- Finance Trade Facilities
- Offset Tax and Debt Liabilities
- Free-up Locked (or blocked) Funds
- Create Fixed Returns
- Verification & Due Diligence Services
To submit a Bank Instrument or Monetisation request; please complete the online inquiry form.