lease sblc
Lease bank Instrument providers, Lease Letters of Credit, Lease SBLC, Lease Bank Guarantee Providers
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 50 Billion (Max)
3. Issuing Bank: Barclays Bank London, HSBC London or Hong Kong or any AAA Rated Bank.
4. Age: One Year and One Day
5. Leasing Price: 4% of Face Value plus 1% brokers commission (if there is a broker in the transaction)
6. Delivery: Bank-To-Bank Swift.
7. Payment: Wire Transfer
8. Hard Copy: Bonded Courier within 7 banking days.
WHAT IS STANDBY LETTER OF CREDIT (SBLC): AND HOW TO USE IT
Entering into a commercial or financial transaction always involves certain risks for the seller or the financier. The most serious risk is that of not being paid. There are many methods available to help ensure payment. One such method is through the use of a letter of credit.
The letter of credit substitutes the credit of a third party, usually a bank, for that of the buyer or debtor. In transactions in which a commercial letter of credit is used, the bank agrees to pay the seller for the goods sold, usually upon presentation of a document stating that the goods have been received by the buyer. In transactions in which a standby letter of credit is used, the bank agrees to pay the financier if the debtor defaults upon his obligation to pay. In both cases, the seller or financier is assured of payment, provided the conditions of the letter of credit are satisfied. Upon payment by the bank, the buyer or debtor is obligated to reimburse the bank.
Three legal relationships exist in a letter of credit transaction. First is the contractual relationship between the seller and buyer or the financier and debtor evidenced by a contract for the sale of goods or a contract to lend money. The underlying contract, in addition to creating an obligation of payment or performance, requires the buyer or debtor to arrange for a bank (the issuer) to issue a letter of credit to the seller or financier (the beneficiary). Second is the contractual relationship between the bank and the buyer or debtor (the bank’s customer). The customer arranges for the bank to issue the letter of credit in favor of the beneficiary, and the customer agrees to pay the bank for the amounts paid under the letter of credit. Third is the relationship between the issuer and the beneficiary. This relationship is evidenced by the letter of credit. In most cases, Article Five of the Uniform Commercial Code (UCC) governs the use and interpretation of letters of credit. The UCC defines a letter of credit as “an engagement by a bank or other person made at the request of a customer that the issuer will honor drafts or other demands for payment upon compliance with the conditions specified in the letter of credit. There is no particular form required for a letter of credit other than that it must be in writing and signed by the issuer. No consideration is necessary.
These three relationships are separate and distinct. The letter of credit is independent from the underlying business transaction between the bank’s customer and the beneficiary of the letter of credit. This independence from the underlying contract creates a primary obligation on the part of the bank to the beneficiary and is the key to the utility of a letter of credit. The bank’s obligation to honor the letter of credit is not conditioned upon performance or nonperformance of the underlying contract. Instead, the bank’s only obligation is to determine whether the drafts or demands for payment made by the beneficiary comply with the conditions specified in the letter of credit.
If the letter of credit requires presentation of documents for payment, then the bank must examine the documents with care to ascertain whether, on their face, they appear to comply with the terms of the letter of credit. If the conditions specified in the letter of credit have been satisfied, the bank must pay the beneficiary unless a required document is forged or fraudulent, or there is fraud in the transaction. If the fraud or forgery is not apparent on the face of the document, the bank may not refuse payment even if notified by its customer that there has been a fraud or a forgery committed. A court may, however, enjoin payment in such a case.
Upon payment of the letter of credit by the bank, the customer has no cause of action against the bank for improperly honoring the demand for payment unless the bank accepted noncomplying documents and did not use care and good faith in examining them. When the beneficiary makes a demand for payment of the letter of credit, he warrants to all interested parties that the necessary conditions of the letter of credit have been satisfied. If the beneficiary has made an improper demand for payment and did in fact receive payment, then the customer has a cause of action against the beneficiary for breach of this warranty.
How to get a Standby Letter of Credit (SBLC, LC)
How to Obtain a Standby Letter of Credit
Obtaining a standby letter of credit is similar to obtaining a commercial loan, though with a few key differences. As with any business loan, you will need to provide proof of your creditworthiness to the bank.
Unlike a loan, the process for approval for a SBLC is much quicker, with letters often being issued within a week of all paperwork being submitted. Also unlike traditional loans, the bank will require a fee of between one and ten percent of the SBLC amount before issuing the letter. This fee is usually charged per year that the letter of credit is in effect. If the terms of the contract are fulfilled early, you can cancel the SBLC and not incur additional charges.
For small business owners, the standby letter of credit can be a powerful tool for establishing trust with suppliers and vendors. Obtaining an SBLC is proof that you and your company have good credit, and can put many suppliers at ease about providing you favorable financing terms. Furnishing a financial SBLC can often allow you to negotiate payment and financing terms with suppliers from a position of strength in order to get the best interest rates and payment schedule, while maintaining a good relationship with your suppliers.
If you provide services, on the other hand, offering to furnish performance standby letters of credit can be extremely useful to helping your business secure large contracts. Putting your clients at ease by being willing to guarantee your work financially can overcome many of the objections business owners face in the selling process.
What can a BG and SBLC be used for?
What can a SBLC be used for? SBLC’s (and BG’s) can be used to enhance your ability to apply for a line of credit with your bank; in other words, it can be used as collateral when your bank is asking for additional comfort when you ask them to fund your project. We can help you acquire an SBLC.
The SBLC’s we deal in are genuinely 100% cash-backed and therefore usable as collateral. Our issuers only use top 25 World Banks – mainly from Europe like HSBC, Deutsche, UBS etc. This guarantees world wide acceptance of your SBLC.
These SBLC’s are generated by “someone” blocking their funds on your behalf, so we speak of a “leased” SBLC. In other words the SBLC is owned by the issuer and you are the beneficiary.
The SBLC is generally issued for 1 year and 1 day, but can easily be extended up to 5 years. (It is possible to get an SBLC for only 6 months). Once issued the SBLC is transferred to your bank via the Swift protocol of MT760.
Of course, Leasing of an SBLC comes at a cost. And to be very honest: at a high cost. Financing your project by using an SBLC is very expensive. First you need to pay money to the issuer of the SBLC plus commission to the consultants facilitating the process, Then you need to give the SBLC to your bank, who are providing a Line of Credit against the SBLC, which may only be up to 90% LTV or less. And usually, your bank will charge a one off fee to ‘monetise’ the instrument and also charge interest on the drawn down loan amount.
To successfully apply for an SBLC you need to be aware of four vital points:
a) You need to have a good project
b) You need to have a bank funding your project based on the supporting collateral of an issued SBLC
c) You need to have the money to pay for the leasing of the SBLC, you may also need to pay brokers if they are involved in the transaction.
d) You need to have a believable and realistic exit strategy to repay the loan and return the SBLC at the end of the term
All the SBLC’s we deal with are callable, assignable, fully transferable and lienable.
If you are thinking of using an SBLC to participate in a High Yield Trade Program, we are more than happy to assist you in acquiring the SBLC and placing it into trade.
However, you need to be very sure you are able to pay the leasing fees of the SBLC before issue, as most providers will not allow the instrument to be taken into a Trade Program unless and until the fee is paid. You cannot pay the lease fee from the program returns.
It is also not possible to use an SBLC to secure a commodity trade and pay for the SBLC out of the profits from the transaction. When paid for and used correctly, these instruments provide numerous lucrative options. we can provide BG’s, SBLC’s and CD’s, which can be blocked or delivered via SWIFT.
Typical projects we have had successful applications for are:
– Resorts -Building or Upgrading
– Growing a Company
– Trade Programs
Getting Started with a Standby Letter of Credit (SBLC)
Get Started with a Standby Letter of Credit (SBLC)
A financial letter of credit generally works on the other party in the exchange—in our example, the museum can be asked to provide a financial SLBC to your firm for the total amount of the project. If they fail to pay you after work is finished, the bank will issue payment to your business on behalf of your client.
These types of SBLCs are often required when performing international trade or other large purchase contracts where other forms of payment protections (such as litigation in the event of non-payment) can be difficult to obtain.
DL Financial Ltd. 