bank instruments provider
Joint Venture Funding – How to Present Your Project to Get Funded
DL Financial Ltd Welcomes you to the last quarter of 2015, the defacto year of Joint Venture (JV) financing. Institutional financing is not available so developers are looking outside the box to fund their projects. The most common form of favorable financing is JV. This financing comes in more shapes, sizes, and terms than colors of the rainbow. There are, however, a few common things that all JV funders look for, regardless of the project, location or dollar amount. The purpose of this article is to share with you what these common denominators are and how you should present your project to get the most favorable terms.
Let’s look at this from your potential funder’s perspective. What does he want? The answer is simple, but arriving at achieving his goals involves a tremendous amount of scrutiny and due diligence on you, the developer. Quite simply, the JV funder wants a return on his investment. You must speak his language. What he wants is a pro forma that shows what his internal rate of return (IRR) is at two and five years. If you cannot prepare one of these, find someone who can. This document or spreadsheet shows vision and the common goal of making money.
Everything else is secondary, but also very important. You need to prepare a package that consists of the following items:
- an executive summary of the project that is no more than 5 pages (no funder will read a 120 page business plan before reading an executive summary)
- the proforma
- bios and resumes of all of the key players, including your contractors
- the entire business plan
- an appraisal if you have one
Logically, the funder has the money. You have to prove that you have the brains, muscle and integrity to be a great and cooperative partner. Your opportunity is not the only one on his desk, but it will certainly be the most presentable. Sloppy presentations make for sloppy projects.Finally, the worst thing you can do is put pressure on the funder to act or fund immediately. Desperation only indicates weakness and poor planning.
DL Financial are NOT Brokers! We Are Direct Providers of Loan, BG, SBLC, DLC & Project Funding
We are NOT Brokers! DL Financial Limited are Direct Genuine Bank Guarantee Issuers, monetizers and discounters.
Direct means….. There is no Broker between us and the you the customer, we have open direct unrestricted access to the most reputable prime Bank Guarantee and SBLC issuing banks in the world.
DL Financial has forged close committed, long term relationships with large wholesale service providers, BG Issuers and Monetizers who want to focus on transacting deals not running a retail store front and dealing with a wide cross section of difficult, demanding and often uninformed customers.
So DL Financial has became the central focus, we now handle all client liason, we prepare, arrange, issue and in most cases draft all the BG Issuing and BG Funding contracts.
We deliver the front end, our wholesale suppliers deliver the back end. It is the perfect partnership and synergy, each focusing our time and attention on our core strengths and being able to smoothly and efficiently close client deals.
There is no Broker Joker BS with us, our motivation is to work with clients and get the deal closed. There are no Broker Games, No Middle Men, No one that stands between us, the customer and the issuing banks.
We are pure and simple the Agreement Issuers and the Dealmakers for the Entire Process!
We happily pay all brokers who refer business to us but we are not brokers ourselves. So when your tired of 9000 Brokers and 1000 Scammers and you want to get something real completed, email us immediately. We look forward to being of service to you.
DL Financial Ltd issues Real Bank Guarantees, real and genuine SBLC’s and completes Real Funding without long stories!
Others Talk, but DL Financial Delivers. If you are tired of brokers and scammers cheating you and telling you stories and no one ever delivering what they promised, maybe its time you became a customer of DL Financial Ltd.
Top 5 Credit Cards For the Super Rich ONLY
For people of average wealth, credit cards are ways to get by when money is tight, make additional purchases or to earn generic rewards. Credit cards give the super-rich power, incredible perks and help them further fund their extravagant lifestyles. Many of these exclusive credit cards come only through invitation or by achieving specific benchmarks.
1. American Express Centurion Card
The American Express Centurion Card is the most exclusive credit card in the world and is commonly known as the original black card. Launched in 1999, American Express has kept it in a shroud of uncertainty, giving it a very high level of status in the minds of consumers. The company won’t release the full details of the card or how one can become a cardholder, but a few criteria have been leaked.
Before even applying to own this card, a person has to be an American Express Platinum cardholder for at least one year. The cardholder must charge at least $250,000 on the Platinum card in one calendar year. Then, if a cardholder is lucky enough to be invited to apply for an American Express Centurion Card, she will need to pay an initial fee of $5,000 and an annual fee of $2,500.
With these criteria and fees come some very nice perks. The American Express Centurion Card provides access to a 24-hour concierge service, flight upgrades, complementary hotel rooms, personal shoppers and the ability to close a retail store for personal shopping.
2. JP Morgan Chase Palladium Card
The JP Morgan Chase Palladium credit card is made of laser-etched palladium and gold, and it is reserved for consumers who have a relationship with JP Morgan’s private bank, wealth management or investment bank. Unlike the American Express Centurion Card, this card has an annual fee of only $595 and has no prior spending requirement.
The JP Morgan Chase Palladium card offers its cardholders a very high rewards program. Each dollar that a cardholder spends on travel results in two points toward the card’s reward benefits. Cardholders also receive a 35,000 point bonus after spending $100,000.
3. Dubai First Royal MasterCard
The Dubai First Royal MasterCard is trimmed in gold, with a .235-carat diamond in the center of the card. Consumers must receive an invitation from Dubai First to become cardholders.
The card comes with some amazing perks. Cardholders have access to a team of 24/7 lifestyle managers whose sole purpose is to meet the cardholders’ every request. Additionally, the card has no credit limit and zero restrictions, allowing cardholders to spend as much as they want.
4. Stratus Rewards Visa Card
The Stratus Rewards Visa is a card that tries to differentiate itself from other elite cards, even down to its color. The bright white card is available to high-net-worth individuals (HNWIs) only through invitation. However, these individuals can pool their rewards points together to use toward private jets and other perks, an option exclusive to this card.
These other perks include personal concierge services, discounted charter flights, car services, upgrades at luxury hotels, merchandise discounts and consultations with lifestyle experts. The card has a $1,500 annual fee.
5. Coutts World Silk Card
Queen Elizabeth II uses the Coutts World Silk Card, as do least 100 other people who have $1 million or more in a Coutts account. Known as England’s most exclusive credit card, the Coutts World Silk Card comes with a 24/7 concierge service, access to exclusive airport lounges and private shopping at designer stores. However, the credit card has an extremely high annual percentage yield of 49.1%, prompting cardholders to pay off balances quickly.
We Are Providers of Loan, bank guarantees & SBLC (https://dlfinancial.wordpress.com)
Letters of credit providers- L/C, DLC, SBLC and lease bank guarantees
Letter of credit (Documentary Letter Of Credit (L/C, DLC) is the bank’s obligation to pay the seller of goods or services a certain amount of money in the timely submission of documents confirming shipment of goods or performance of contractual services.
Documentary Letter Of Credit is one of the most important means of financing in the international trade, as the letter of credit is a tool that removes most of risks as from the buyer (importer) and from the seller (exporter).
Documentary Letter Of Credit is very flexible and convenient tool of calculations, which have the widest recognition and acceptance in the world because of the following advantages:
- For the seller, the letter of credit is convenient because it removes the risk of insolvency of the buyer, because the letter of credit is the unconditional obligation of the bank to pay, regardless of the presence or absence of the bank of the applicant credit. Thus, the letter of credit provides a higher degree of protection of the seller’s interests with payment upon delivery or by collection.
For the seller of credit is convenient because it removes the risk of insolvency of the buyer, because the letter of credit – the unconditional obligation of the bank to pay, regardless of the presence or absence of the bank of the applicant credit. Thus, the letter of credit provides a higher degree of protection than the interests of the seller with payment upon delivery or by collection.
- For the customer the letter of credit is convenient because it provides greater protection of the buyer’s interests compared to the down payment, and eliminates the risk of unscrupulous sellers, because the letter of credit may be required, among other documents, the documents, issued by independent third parties (Chamber of Commerce, the insurance company, the independent inspector).
- Availability of “Uniform Rules and Practice for Documentary Letter of Credit”, which are internationally recognized, clearly defining and delimiting the obligations of the parties of the letter of credit, allows advancing the interests of the applicant or beneficiary. Thus, the letter of credit is the bank’s obligation as an independent arbitrator who shall be subject to payment of the letter of credit, regardless of the possible litigation between the parties to the contract.
The principle of autonomy and independence of the letter of credit from the contract is fundamental.
What should be important during choosing a letter of credit:
It is important to define clearly the conditions of the letter of credit: type of the letter of credit, payment conditions of the letter of credit, a list and description of the documents submitted by the payee and the requirements for such documents, the closing date of the letter of credit and the period of submission of documents.
There are the following forms of letter of credit:
Revocable Letters of Credit, which can be changed or canceled by the issuing bank without prior notice to the recipient of funds. Revoke of letter of credit does not create any obligation of the issuing bank to the payee (Article 1094 Civil Code). Nominated bank is obligated to make a payment or other operations on a revocable letter of credit, if at the time of their commission they have not received notice of the change of conditions or canceling credit. A letter of credit is revocable if its text does not explicitly state otherwise.
Irrevocable letter of credit is a firm obligation of the issuing bank to pay money in order and the terms defined by the conditions of the letter of credit, if the documents provided for by it, submitted to the bank specified in the credit, or the issuing bank, and observe the terms and conditions of the letter of credit.
Irrevocable letter of credit guarantees that the exporter will make payment to the performance of its obligations, even if an importer wants to abandon the deal. Therefore, exporter, performing a special order, for which most likely will not be another buyer, chooses exactly this kind of letter of credit.
Irrevocable unconfirmed letter of credit. When making an unconfirmed letter of credit issuing bank, providing a letter of credit, is only party that is responsible for the disbursement to seller. Nominated bank has to pay only after receiving the money from the issuing bank. Nominated bank simply acts on behalf of the bank providing credit, so it does not take any risk.
Irrevocable confirmed letter of credit – the obligation of the issuing bank is confirmed by another bank. Confirmation is an additional guarantee of payment from another bank (Bank of the exporter or prime bank).
Bank, confirming letter of credit is committed to pay for documents according to the conditions of the letter of credit if the issuing bank fails to make the payment.
According to the method of payment letters of credit can be divided into the following types of letters of credit:
1.Transferable Letter of Credit (Transferable LC) is a letter of credit, the beneficiary of which is entitled to instruct the advising bank to transfer the letter in full or in part to another person with the preservation of the conditions of the letter of credit. Transferable letter of credit may be transferred only once (if in the Credit otherwise is stated). Prohibition on transfer of letter of credit is not a prohibition on assignment of revenue on it. Letter of credit can be transferred only if it is clearly defined by the issuing bank as a transferable. The term “divisible”, “fractional”, “assignable”, “passed” and others do not give the right to consider the letter of credit as transferable. This type of letter of credit is applied when in the transaction between the seller and buyer the intermediary participates who has a letter of credit opened in his favor and transferred into its own provider. The letter of credit can be transferred only under the conditions specified in the original letter of credit, with the exception of the amount of the credit, the unit price, which can be reduced, as well as the expiry date, the last date for submission of documents after the date of shipment, shipment period, which may be reduced. During transferable letter of credit the documents should be requested so that they could be used for the initial credit. The use of this type of credit requires caution and a good knowledge of technology.
- Red clause Letter of credit. The essence of red clause letter of credit is that letter of credit requires the terms and conditions of a special clause, according to which the issuing bank authorizes the nominated bank to make an advance payment of a specified amount to the beneficiary before submitting all the documents under the Credit (prior to shipment of the goods or services). Such clause is included in the letter of credit at the request of applicant. Down payment on red clause letter of credit made by the executing bank under a written obligation of the beneficiary to submit documents in accordance with the terms of the letter of credit. After the submission of all documents executed in full. A letter of credit is named in such way because special clause was done with a red stripe.
3.The letter of credit with Payment at Sight. Beneficiary receives payment upon presentation and verification of documents corresponding to all the conditions of the letter of credit. It is provided a reasonable time for a document check before paying to the issuing bank, confirming bank or an authorized bank.
4.The letter of credit with Deferred payment. Letter of credit with Deferred payment is based on an irrevocable commitment of the issuing bank and / or confirming bank to make payment against presentation of the relevant documents not at the time of presentation of the documents and in the corresponding period of payment, determined by the conditions of the letter of credit. Letters of credit (with Deferred payment and payment by acceptance) may be a more attractive financial instruments to customers prior to the date of payment the buyer can sell the goods and pay the letter of credit, generated profit.
- Revolving Letter of Credit (Revolving LC) put up on a certain amount, after which it will be used for some time, again exposed for the payment of claims of the beneficiary as many times as is reached set the maximum aggregate limit.
The advantage for the importer is that it can order the product in quantities greater than it needs at the moment, and thus to secure a better purchase price. In this case, the delivery of goods will be divided into certain parties and must be performed at specified intervals. For exporter to ship on a schedule convenient for the importer, usually under the revolving credit indicating the dates of the respective amounts which represent the proportion of the aggregate limit.
Such statement about the date of the equity amounts forces an exporter to ship goods in time in accordance with the agreed schedule, otherwise unused equity amounts simply void, unless otherwise isn’t stipulated in the letter of credit, that is for a further letter of credit they will be impossible to use. In this case we are talking about the “non-cumulative Revolving Letter of Credit.”
If the amounts that were not used in fixed terms for them, however, are allowed to use in the future, in which case we are dealing with a “cumulative Revolving Letter of Credit.”
Revolving Letters of Credit are useful only for transactions in which the same type of product will be delivered at regular intervals to the same counterparty.
6.Stand-by Letter of Credit (Stand-by LC) was developed by the American banking system and performs the same functions as a bank guarantee. Using a Stand-by Letter of Credit is regulated by the ISP98, and UCP 600.
Stand-by Letter of Credit is a bank’s obligation to make payment in the event of default on the part of the Applicant, and is a bank guarantee. Typically, this letter of credit is opened in cases where the contract provides for payment for goods by bank transfer or otherwise, not giving an absolute guarantee of payment, and the exporter wants to protect himself, but the bank guarantee is forbidden, then in the contract the parties stipulate that as security the letter of credit will be Stand-by by the importer. Payment under this letter of credit will be made in the event of non-payment by bank transfer or otherwise, in unintended ways, on presentation of documents by the beneficiary and the special statement indicating that the counterparty (applicant for the credit) has not fulfilled its obligations in respect of payment.
The use of the term “stand-by letter of credit” is explicated in such way that the law of some states in the U.S. prohibits banks to provide guarantees, and the International Chamber of Commerce Uniform Rules for Documentary Credits under the influence of U.S. banks recognizes the application of these rules for stand-by letters of credit (Article 1). From this position, their use is preferable to a bank guarantee, which are subject to national legislation.
In recent years, access to the banks to provide credit guarantee becomes frequent, which would support the borrower’s obligation to pay to a third party or a promise to fulfill certain contractual obligations. This can be done with the help of letter of credit.
Beneficiary under a stand-by letter of credit is drawn firstly to the applicants for payment and then asks the bank to make a payment. For commercial letter of credit situation is reversed, “the beneficiary receives payment from the issuing bank, without resorting to the buyer for payment.”
Thus, as well as a guarantee, stand-by letter of credit is irrevocable obligation of the bank to pay a specified amount of stand-by letters of credit in the first written demand of the beneficiary in the event of default by a party under the Contract, subject to all conditions of the credit.
7.Back-to-back letter of credit. The letter of credit is opened by the issuing bank at the request of the client-applicant in the event of another open letter of credit in favor of the client, in which he is a beneficiary. In contrast to the transferable letter of credit, basic and back-to-back letter of credit are two legally independent from each other letters of credit, even though both are designed for the same commodity transactions.
Back-to-back letter of credit is effective in cases where the seller does not want the proxy provider to know the end customer, and vice versa. In this case, the terms of a letter of credit opened in the name of the broker, may be moved to credit, which will open in the name of an intermediary third party transactions, both credit will be run independently of each other, and the terms of a letter of credit may differ if it is necessary.
This type of credit is usually used by middlemen.
In the CIS countries to open such credit, the banks generally require collateral or broker deposits to lower the risks.
Payment mechanism
- Importer (buyer) has a guarantee that the bank will not pay for his account as long as he doesn’t receive documents in accordance with the terms of the letter of credit and is satisfied that received documents by the external signs meet the requirements of the importer.
- Banks will deny payment of documents by the importer, if the documents on the goods do not meet the letter of credit, thereby protecting the interests of the importer.
- Customer can be sure of receiving payment as soon as he provides the documents to the bank according with the letter of credit.
- Customer receives against the shipping documents, specified in the letter of credit, prompt payment (if the letter of credit provides for payment terms – on demand).
- Required documents usually include shipping documents such as bills of lading (receipt of shipmaster) goods and transport waybill, duplicate w / a bill showing that the goods have been shipped in accordance with the needs and specification of the buyer.
Letter of credit in most cases is as follows:
- Exporter and importer agree to the release of LC (Letter of credit).
- Importer (the buyer) with the consent of the exporter (seller) asks his bank to issue a letter of credit. The importer’s bank (the issuing bank) in such case assumes an obligation to pay a fixed amount to the exporter with the condition that the exporter will provide the documents that match the letter of credit for a specified period of time.
- Bank issuing informs the bank of the exporter of the credit.
- Bank of the exporter (advising bank informs the exporter that, the letter of credit is issued on his advantage).
- Exporter ships the goods, prepares the necessary documents and send them to the bank for providing in the designated bank.
- Designated bank verifies the documents and if the documents are in compliance with the terms and conditions of letter of credit, this bank will pay the amount of the documents, but not exceeding the total amount of the letter of credit.
- Designated bank sends the documents to the importer’s bank for onward transmission to the importer, who can use them to get the goods.
General advantages of the letter of credit
1.Letter of credit is very flexible computational tool that can be used for payment transactions on a variety deals of clients.
2.Letter of credit is a tool, the rules of using of which are defined in the authoritative international organization, are common and are recognized all around the world. This is beneficial to both customers and banks, as each party of the transaction has a clear understanding of rights, responsibilities, and standard requirements to all participants in the operation.
3.Letter of credit is useful as a tool for short-term financing.
Advantages of the letter of credit for importers
1.Letter of credit may open by own expense of the client, by funds provided by the bank on credit, as well as by providing support by customer to fulfill its obligations (mortgage, deposit).
2.Payment is performed after shipment of goods and delivery of documents.
3.Importer determines a list of the documents against which will be issued payment.
4.Limit the period of providing of the documents and shipment of goods.
Advantages of the letter of credit for exporters
1.To the obligation of the buyer to pay, it is added an obligation of the issuing bank, this liability does not depend on the relationship between the seller and the buyer.
2.If the letter of credit is confirmed, so there is a guarantee of payment from the second bank.
3.Performance of the letter of credit is a guarantee of payment.
The similarities between the letters of credit and guarantees
1.Letter of credit and guarantee are due to the existence and the need to secure the obligations of partners in a transaction.
2.Letter of credit and guarantee are the bank’s obligation to make payment to the beneficiary against certain documents;
3.Letter of credit and guarantee are paid during the provision to the bank well-defined and clearly understood terms of those instruments of documents.
4.Commercial banks offer guarantees and letters of credit on the base of written confirmation of the presence of obligations in the applicant that are provided by such guarantees or letters of credit (the contract, etc.).
The differences between the letters of credit and guarantees
- Letter of credit is opened with the intention of using it, that is, payment by letter of credit is a phenomenon that occurs during the normal course of events (method of payment). Guarantee is used as a way to ensure obligations and is used if in the process of the implementation of one of the parties of the transaction is not able to meet its own obligations.
- Letter of credit is used as a method of payment in one form or another. The guarantee can cover almost any kind of obligations (the advance payment guarantee, performance of contractual obligations, tender obligations, repayment, payment of customs duty, payment of a fine or compensation fixed by the court, the observance of the guarantee period of equipment, guarantee of the payment of court collateral, guarantee of payment of the transfer a football player and many others.) Area of application of guarantee, thus much wider than in credit.
- Letter of credit is a transferable tool, as it allows to optimize the calculations between the partners. Guarantee in rare cases can be transferable as all that is required to receive funding under the guarantee is the requirement of payment, which makes it a ground for abuse of this tool.
DL Financial Ltd issues Real Bank Guarantees, real and genuine SBLC’s and completes Real Funding without long stories!
DL Financial Limited (DLFL) are genuine and reliable providers of loan, international project funding, Lease bank guarantee providers, buy, lease or rent sblc, dlc and all letters of credit. Kindly contact us today for all your financial needs.
Skype: dl.financials.limited
Email: info@dlflimited.net
Website: http://www.dlflimited.net
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Standby Letter of Credit (SBLC), Proof of Funding (PoF), Bank Guarantee (BG)
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QUESTIONS & ANSWERS ABOUT LEASING & LOAN FUNDING
QUESTION: SINCE WHEN ARE THE COMPANIES OF THE PROVIDER AND THE FUNDER IN OPERATION IN THE UK?
Answer: The provider companies are UK registered and operate in good standing since 1992.
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QUESTION: WHO OFFERS THIS LEASING AND LOAN STRATEGY?
Answer: The Funder is a major commodity trader, holding large cash reserves in Europe, enabling the company to engage in single transactions of up to EUR 50 Billion. He is working closely with the collateral provider since more than twenty years.
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QUESTION: WHAT ARE THE BASIC TERMS OF THIS LEASING & LOAN FACILITY?
Answer: LTV 95%, 6% p.a. (2% for the loan and 4% for leasing the instrument) for up to 30 years, with early repayment option and availability from project funding of almost any size, from £1 million and up to £ 5 billion.
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QUESTION: WILL I DEAL WITH ONE OR SEVERAL ENTITIES?
Answer: Terms and conditions and the legal structure require you to deal with two separate entities which work together on this concept since more than twenty years. We enable access to both, the loan provider and leasing of the collateral all at the same time.
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QUESTION: WILL THE TERMS OF ISSUING AND PROVIDING REMAIN THE SAME, OR CAN THERE BE CHANGES?
Answer: This is not a regular banking service. The market of providing financial instruments is constantly on the move and we try to obtain best possible terms at any time. So you must be aware that an indication provided today might not be valid and available tomorrow.
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QUESTION: DO YOU ASK FOR AN EQUITY STAKE IN MY COMPANY?
Answer: This concept enables you to retain all equity of your company or project under your sole control and still get all the liquid cash that you require to fund your project.
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QUESTION: ARE THE SWIFT AND BANK FEES REFUNDABLE?
Answer: The required fees are refundable in the event the instrument would not be issued for you. The contract and the corporate refund undertaking guarantees that.
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QUESTION: WHAT ARE THE REQUIREMENTS TO QUALIFY?
Answer: You must be able to prove the availability of a minimum of £155,000.00 (or equivalent) in liquid cash equity, through a confirmation by your bank, addressed to yourself, or you may provide a confidential copy of your current bank statement to prove that you can be an acceptable candidate for a Project Funding Loan. You will have to move some funds on a bank to bank basis, minimum £155,000.00 (or equivalent) in any other currency
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QUESTION: WHAT IS THE ANNUL INTEREST RATE?
Answer: The annual interest rate of 6% includes already the annual cost for utilizing such collateral (leasing cost 3% + 1% Broker Commission) and 2% for the loan. All-in all, your annual costs are 6% with a 95% (LTV) up to 30 years. This Project Funding Loan is available from £5 million in any currency, but rates are linked to British Pound Sterling since both the guarantee provider and the funder are based in the United Kingdom.
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QUESTION: Is there is a credit check by the Lender and his bank on the Applicant?
Answer: Yes, there is a very thorough credit check. Due Diligence on the applicant/client company must result in a clean criminal record, no bankruptcy issues and no mortgage issues. The same stands for any of the Directors that are involved.
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QUESTION: HOW IS THE BORROWER PROTECTED, BANKABLY AND LEGALLY, THAT HE WILL NEVER RISK TO LOOSE HIS MONEY, FOR ANY REASON, WHATSOEVER?
Answer: The client has a corporate contract with the bank guarantee provider company in the UK which operates this business in good standing since 1992. Can you and your company come up with the same record?
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QUESTION: WHAT IS THE FACILITATORS FEE (MY OWN BROKER FEE) IN CASE OF SUCCESSFUL END, AND WHAT KIND OF A PROTECTION DO I HAVE FOR THE DISBURSEMENT OF MY FEE AND WHEN IS THIS DISBURSEMENT EFFECTED?
Answer: The broker arrangements are quite simple and extremely interesting. Since the smallest transaction that we can avail in this concept is for £200,000,000.00 and there is a commission of 1% in the transaction which we split with the broker on a 50:50 basis, this means that you will have at least £1,000,000.00 in commission. It is becoming even more interesting if you consider that this is medium to long term financing which means, the client will have to renew the bank guarantee instrument several times (for several years). And that means, you will have £1,000,000.00 for every year the client needs to extend / renew this scenario. So it is a win-win situation for all parties engaged.
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QUESTION: CAN YOU NAME THE BANK INSTRUMENT PROVIDER AND THE FUNDING PROVIDER, SO WE CAN CROSS-CHECK YOUR INFO?
Answer: April 2015, one of our clients had due dilligence performed on both companies, the lender and the lessor by a London Lawfirm. The result is available on a confidential basis and can be downloaded. The password for this confidential document is available upon request.
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QUESTION: IS THE FEE 6% ONLY ANNUALLY, AND OR IS THE PRINCIPAL PAYABLE TOO? CAN YOU PROVIDE A HYPOTHETICAL EXAMPLE?
Answer: The terms are simple: For this concept you will have to lease a bank instrument of relevant size. The total annual leasing fees are 4% including broker fees. The loan made available based and secured through this leased bank instrument. The LTV is 95% of the face value of the instrument. The 95% cash loan is available at a lending rate of 2,5%. (4% leasing and 2.5% loan charges per annum = 6.5%p.a. total). To roll this over for another year, you will have to pay the 4% for the leasing and the 2.5% for the loan every year. Since you do not have to come up with any kind of own securities for the loan, you are using the funds generated from a LEASED INSTRUMENT. Whenever you want to stop, you will also have to pay back 100% of the leased instrument that has been made available to you when you started.
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QUESTION: WHAT TIME FRAME ARE WE TALKING ABOUT FROM APPLICATION SUBMISSION TO RELEASE OF FUNDS TO THE CLIENT?
Answer: If you have the funds available (appx. 0.1 to 0.2%) the transaction can be finished and the loan amount available within 10 to 15 banking days. ——————————————————————————————————————————-
QUESTION: CAN LOAN OBTAINED BE USED IN A PRIVATE BUY/SELL TRADE PROGRAM?
Answer: You can use the cash funds obtained in any legal way and as it was applied for, which also includes investment purposes. ——————————————————————————————————————————-
QUESTION: WILL THE LEASED BANK INSTRUMENT BE SWIFT-ED DIRECTLY TO THE FUNDER’S BANK OR MUST IT LAND INTO THE CLIENT’S ACCOUNT FIRST?
Answer: It is sent via SWIFT MT799 and MT760 directly to the account the funder will open for your transaction at his bank and you will have to assign the instrument to the funder to backup the loan.
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QUESTION: WHAT IS FUNDER BANK’S NAME, RATING AND LOCATION?
Answer: Both, the funder and the lender have their bank accounts at the major banks in London. ——————————————————————————————————————————-
QUESTION: WHAT IS LEASE INSTRUMENT PROVIDER’S BANK NAME, RATING AND LOCATION?
Answer: Both, the funder and the lender have their bank accounts at the major banks in London. ——————————————————————————————————————————-
QUESTION: WHAT HAPPENS IN THE CASE WHERE THE CLIENT IS ABLE TO PROVIDE THERE OWN INSTRUMENT?
Answer: The funder only works with the approved provider of the instruments and does not lend against third party instruments. ————————————————————————————————————-———-—
QUESTION: WHAT IS THE PROCEDURE FROM APPLICATION UNTIL THE LOAN IS PAID OUT?
Answer: From Application until the Loan Amount is paid to your client
(1) You client’s Application has to come with proof that the SWIFT and Bank Arrangement fees are blocked IN YOUR CLIENT’S ACCOUNT for this transaction. IF THIS CAN NOT BE PROVIDED, we require a processing fee of USD 5,000.00 which will be credited towards the commission payment at the time the loan is paid out to your client.
(2) We will arrange that the LENDER will issue a Loan Contract for you and the LESSOR will arrange a leasing contract for you in line with what you have received as a specimen already.
(3) THE LESSOR will block the funds for issuing your client’s leased Bank Guarantee (FUNDS BLOCKING PROCEDURE as described in the Leasing Contract)
(4) Your client will receive an email from the bank officer confirming that funds are blocked for this transaction and the transaction will proceed
(5) Your client will have to transfer the SWIFT and Bank Arrangement fees to the account of the PROVIDER.
(6) The LESSOR will send a SWIFT MT 799 to the LENDER advising the bank guarantee instrument
(7) THE LENDER will reply with a SWIFT MT 799 confirming readiness to receive the bank guarantee
(8) The LESSOR will send the SWIFT MT760 to the LENDER bank.
(9) The LENDER will fund against the leased bank guarantee 95%. He will pay the leasing fee of 4% to the LESSOR and the remaining 91% to your client in cash. This way the first year Leasing Fee, and the fee for the first year of the Loan are paid. The next payment your client will have to make is the 4% leasing fee at the end of the first year, and the 2.5% for the loan due in the following year
Lease bank Instruments (Letters of Credit, Bank Guarantee, SBLC, DLC)
We are direct providers of freshly cut bank instruments like BG (Bank Guarantee), MTN’s (Medium Term Note), SBLC (Standby Letter of Credit) & DPLC’s (Direct Pay Letter of Credit) CD’s (Certificate of Deposit), and just about every other type of financial instruments available through our network.
ALL OUR BG, SBLC AND LETTERS OF CREDIT ARE ISSUED BY TOP PRIME AAA RATED BANKS LIKE BARCLAY’S BANK LONDON, DEUTSCHE BANK AG GERMANY, HSBC, STANDARD CHARTERED BANK ETC.
- Bank Guarantee (BG) in US$ or Euros
- Standby Letter of Credit (SBLC) in US$ or Euros
- Medium Term Notes (MTN’s) in US$ or Euros
- Treasury Bills (T-Bill) in US$ or Euros
- Documentary Letter of Credit (DLC, SLC, LC) in US$ or Euros
- Promissory Notes in US$ or Euros
- Discounting of Bank Instruments
Our bank instruments can be engaged in PPP Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Roads, Bridges, Hospitals, Hotels, Condo, Real Estate and all kind of international business trading including oil/gas business, diesel, Gold Dust, Gold Bars, Rough Diamonds etc.
1. Instrument: Bank Guarantee (BG) /StandBy Letter of Credit (SBLC)
2. Total Face Value: Eur/USD 1Million (Min) to Eur/USD 50Billion (Max)
3. Issuing Bank: Barclays Bank, HSBC, Lloyds Bank London, Standard Chartered Bank, Deutsch Bank AG, Frankfurt or any AA Rated Bank.
4. Age: One Year and One Day
5. Leasing Price: 4% of Face Value a plus 2% brokers commission (1% for the lessee side and 1% for the lessor side, PLEASE NOTE, THIS BROKERS COMMISSION COMES INTO EFFECT ONLY IF THERE ARE BROKERS INVOLVED IN THE TRANSACTION)
6. Delivery: Bank-To-Bank Swift.
7. Payment: Wire Transfer
8. Hard Copy: Bonded Courier within 7 banking days.
Gunmen take 170 people hostage at a Radisson hotel in Mali
Gunmen stormed a hotel on Friday (Nov. 20) in the Malian capital of Bamako and held 140 guests and 30 staff members hostage, with at least three people reportedly killed.
Malian security forces, assisted by US special forces based in the region, subsequently stormed the hotel, and 80 of the hostages managed to escape.
“Our special forces have freed hostages and 30 others were able to escape on their own,” Salif Traore, Mali’s security minister, told AFP. The death toll is likely to rise, with reports of many bodies in the hotel.In a statement at 13:45 CET (7:45am ET), the owner of the hotel said 125 guests and 13 employees are still in the building.
“The police and security forces helped us get out the building. There are still lots of people in there. I also saw bodies in the lobby, It was absolutely horrible,” a freed hostage told freelance journalist François Rihouay (translation by the Guardian).
Northern Mali was taken over by Islamist militants in 2012, and although they were ousted by a French-led multinational force, the groups have since staged a number of attacks on civilians, UN peacekeepers, and the Malian military.
Before the Malian counter-assault, the attackers released some hostages who were able to recite Quranic verses, according to Reuters.
Earlier, The Rezidor Hotel Group, which operates the Radisson Blu Hotel in the western part of the city, sent this statement to Quartz:
[The company] is aware of the hostage-taking that is ongoing at the property today, 20th November 2015. As per our information two persons have locked in 140 guests and 30 employees. Our safety & security teams and our corporate team are in constant contact with the local authorities in order offer any support possible to re-instate safety and security at the hotel. At this point we do not have further information and continue to closely monitor the situation.
The situation started early on Friday, a security source told Reuters. “Very early in the morning there was gunfire. Apparently it’s an attempt to take hostages,” the security source told the news agency. “The police are there and are sealing off the area.”
The Radisson Hotel, which has 190 rooms, is popular with tourists. There was reportedly a UN function being held at the hotel whenreports say gunmen entered the hotel with diplomatic cars and took over the seventh floor and were firing down the corridor. Witnesses say 10 gunmen armed with AK-47s w involved in the attack.
“They were in car with a diplomatic license plate. They were masked. At the gate of the hotel, the guard stopped them and they start firing. We fled,” a guard at the hotel told the BBC.
The local US embassy confirmed the incident on its Facebook page and warned American citizens to “shelter in place” and “contact their families.”
There are also reports that 10 Chinese citizens are trapped inside the hotel, the Chinese embassy in Mali told a Chinese paper (link in Chinese) a reporter. Four of the Chinese guests have been freed, state-run broadcaster CCTV reported. Twenty Indian guests at the hotel were also safe, according to a foreign minister spokesman:
This is the second hostage situation at a hotel in Mali in recent months. In August, 13 people died after gunmen took over a hotel in Sevare, a town in central Mali. Among the dead were five UN workers.
French president François Hollande has issued a statement of support to Mali, a former French colony:
I want to assure all Malians of our solidarity and support for them and I urge all French nationals who are in the affected area to be vigilant at this time.
In October, a jihadist leader in Mali linked with al-Qaeda in the Islamic Maghreb (AQIM), reportedly called for further attacks against France, which is helping the government fight extremists in the country.
BUYING AND SELLING GOODS INTERNATIONALLY WITH LETTERS OF CREDIT
BUYING AND SELLING GOODS INTERNATIONALLY
International sales transactions between sellers and buyers
require an agreement as to the form of payment for the goods.
Various methods of payment settlement include but are not
limited to open account, foreign collection, cash in advance and
documentary credit. One of the most common forms of payment
is documentary credit, which is also known as a Letter of Credit.
What is a Letter of Credit?
A Letter of Credit is literally a “letter” pertaining to a sales
transaction between a buyer and seller. The “letter” is initiated
by the buyer and is directed to the seller or beneficiary, in most
cases. In some cases, the beneficiary may not necessarily be
the Seller but would be the party possessing the right to receive
payment for the goods or services. (Please refer to the
webpage dealing with transferable letters of credit for additional
information.)
A Letter of Credit is the traditional worldwide risk management
tool for international transactions. Issued by a foreign bank
(representing the buyer) and confirmed by a corresponding
bank usually in the country of the seller, a Letter of Credit is the
overseas bank’s commitment to pay the seller’s drafts. A Letter
of Credit is opened by an issuing or opening bank. The buyer
chooses the opening bank.
Revocable vs. Irrevocable Letters of Credit
A Letter of Credit may be revocable or irrevocable. In a
revocable Letter of Credit, the issuing bank (representing the
buyer) has the right to cancel or alter its obligation at any time
before payment of a sight draft or acceptance of a time draft.
That situation exists even if goods were shipped in reliance on
the expectation of payment.
An irrevocable Letter of Credit that is accepted by the seller,
however, cannot be altered or canceled without the consent of
the seller. Any change to an irrevocable Letter of Credit requires
the consent of all parties. Consent would include any parties
beyond the buyer and seller. For example the confirming banks
would be affected parties.
Confirmed vs. Unconfirmed
An irrevocable Letter of Credit can be either confirmed or
unconfirmed.
In a confirmed Letter of Credit, the issuing bank (representing
the buyer) agrees independently to the buyer’s commitments to
pay the seller the agreed-up amount of money, as long as all the
requirements of the Letter of Credit are fulfilled.
A confirmed irrevocable Letter of Credit can become very
elaborate. A second bank (often specified as a prime bank) may
confirm or otherwise guarantee payment of the foreign bank that
initially opened the Letter of Credit. This requirement originates
from the seller and usually takes places only if the bank of the
buyer is not internationally established.
Other types of Letters of Credit
Other types of Letters of Credit may include straight or
negotiation credits. These types of Letters of Credit inform the
seller whether any bank, or only certain banks, can process the
documents of the seller to receive payment. All of the various
types of Letters of Credit can be combined in various ways with
extended rights and/or obligations, depending upon the exact
type of Letter of Credit issued. A Seller should be aware of
rights under a Letter of Credit before proceeding with a sale.
Letter of Credit rules- International Chamber of Commerse
A Standard Documentary Credit Application Form has been
developed by the International Chamber of Commerce (ICC), in
Paris, France. The ICC has also published a guide to
Documentary Credit Operations. Banks throughout the world
adhere to the rules developed by the ICC.
The rights and obligations of buyers, sellers and participating
banks in international Letters of Credit transactions are
presented in careful detail in publications made available by the
ICC. Under the Uniform Customs and Practices for Document
Credits (UCP), the International Chamber of Commerce has
made available in a publication called the UCP 600. The
publication is almost always referred to in international Letter of
Credit forms and is a part of the Letter of Credit contract. The
ICC also has available ICC Publication No. 511, which takes the
reader through UCP 600 on an article-by-article and
clause-by-clause basis. The ICC Publication No. 511 also
explains the reasoning that led the ICC Working Group to
develop a thoroughly revised sets of Rules for Documentary
Credits under UCP 600.
Benefits of using a Letter of Credit
By conducting export sales transactions under an irrevocable
Letters of Credit, the seller does not have to determine the
credit standing of the foreign buyer. Letters of Credit are issued
in many different forms from foreign banks and financial
institutions. The variations are due to differences in customs
and regulations of trade and finance in the country of origin of
the issuing bank or financial institution. If, for any reason, a
seller cannot comply with one or more conditions of a Letter of
Credit, it is absolutely imperative for the seller to contact the
buyer to arrange for one or more amendments to the original
agreement.
Letter of Credit Discrepancies
If there is a disagreement between a sale contract’s shipping
and documentation requirements and those in a Letter of Credit,
the seller must take immediate action before shipping to arrange
for an amendment to the Letter of Credit. If the seller does not
arrange for such an amendment, the seller may experience
payment problems. Full compliance with all conditions for
payment are interpreted by banks rigidly. Any disagreement,
however small, represents grounds to reject the payment of the
draft.
On a worldwide basis, approximately 60% of document
presentations on Letters of Credit are presented with
discrepancies. Banks charge for EACH discrepancy. Therefore,
it is extremely important to ensure document presentations are
accurate and complete to avoid additional costs and delays in
payment processing.
Payment on a Letter of Credit
The documents listed in a Letter of Credit are presented to the
negotiating/paying Bank with a draft, which is sometimes
referred to as a “bill of exchange”. A draft resembles a check. In
a Letter of Credit sale, the drawee on the draft is the bank that
issued the Letter of Credit. The seller is the drawer of the draft.
Drafts are classified as either sight or time. A sight draft requires
a drawee to pay the amount shown in full upon proper
presentation of documentation. On a time draft, a payment date
later than the date of presentation would be stipulated (such as
60 days after sight or 90 days after sight).
When properly presented, a time draft is accepted by the
drawee. This means the drawee indicates an acknowledgement
that the necessary conditions to its payment were met and the
drawee is obligated to pay on the appointed date.
Paying a sight draft or accepting a time draft when documents or
goods have been presented is known as honoring the draft.
If the Letter of Credit states “payment at sight”, the seller should
receive payment within a reasonable time (usually not exceeding
seven days) after documents are presented within the validity
period of the Letter of Credit and accepted by the negotiating
(paying) bank.
Usual Letter of Credit conditions
The usual conditions included in a Letter of Credit include
delivery dates, product specifications and receipt by the bank of
specific documents (such as negotiable bills of lading, inspection
certificates, commercial invoices and packing lists). Any required
documents must be presented to the bank within a specific
period of time. There may also be other terms and conditions as
negotiated between the buyer and seller.
Letter of Credit terms and conditions (and all required
documents) should be agreed upon between the buyer and
seller, in advance of opening of a Letter of Credit. Letter of
Credit issuance instructions should then conform to the terms of
such an agreement.
Exporters in the United States should request the overseas
buyer to open an Irrevocable Commercial Letter of Credit,
payable 100% at sight, freely negotiable or confirmed by a bank.
If the Letter of Credit is to be confirmed, the seller should also
request the buyer to instruct the issuing bank to obtain the
Letter of Credit confirmed by a bank in the United States.
DL Financial Ltd. 