How to Find Genuine SBLC Providers?
- 1. SBLC PROVIDERS: HOW TO FIND GENUINE SERVICE PROVIDERS?
- 2. Sblc provider can be hard to come by. The banks don’t advertise SBLC’s as their own bank products, simply because they are not allowed to. Standby Letters of Credit are provided by high net worth clients with large cash holdings in an account at the Bank. High net worth clients are usually hedge funds, private equity, pension funds, and large coprations etc. It is very difficult not only to get in touch with
- 4. Genuine Sblc provider perform many checks and balances which means that any authorised mandate agents connected to Providers are too follow strict procedures. This is good news on our part as we know we carry clean business but it means that any business we introduce needs to be able to follow certain procedures. Because of the strict ruling, Prestige will let you know what is required but in general we
- 5. We want to know that every business that passes us has the capability to afford the lease fee. A Standby Letter of Credit is an agreement, not intended to be drawn upon but is a safeguard in the event of nonpayment by either party mentioned in the contract. You can either lease or purchase a Standby Letter of Credit. In other words; an SBLC is a document issued by the bank
- 7. The bank confirms the collateral is held within their clients account, the client buys an instrument and it is then freshly cut backed by Providers capital. Depending on the wording agreed in the DOA, it is possible to Monetize an SBLC. When a company completes the forms to lease an SBLC, what they are essentially doing is borrowing collateral (what this is actually called is a temporary “CTA”
- 8. Let’s say that you are an oil refinery company looking to buy oil and are dealing with say ABC Oil. You have an agreement with ABC Oil saying that you want to buy $100M USD worth of oil (on your books you have $10B USD) . You may choose not to use your own bank account and apply through your
- 9. There are several ways SBLC’s can be used and it is all in the wording of the MT760.
- 10. PROVIDERS CAN ISSUE STANDBY LETTERS OF CREDIT FOR THE PURPOSES OF: Trade and commerce – for purchasing of goods. They can also be used to back credit lines issued by banks And/or project funding