Stand By Letters of Credit
International Financing Solutions and ACT Global Finance have established relationships
with a few "A" rated top-world banks to provide an
Irrevocable Standby Letter of Credit (SBLC) service.
____________________________________________
The details of this service is .....
- The SBLC will initially be good for 366 days and renewals are available.
- The fee to the Bank is a flat 10% (less than 1% a month & subject to fluctuate depending on the bank)
- The fee to the Bank is due upon delivery of the SBLC.
- Our retainer and service fee is 1% to 3% based on the amount of SBLC.
- The Broker fee is due upfront upon acceptance of our Term Sheet
The steps are:
1. The client remits the completed SBLC Bank application to us.
2. The Term Sheet is issued.
3. The client remits the Broker fee upon acceptance of the Term Sheet.
4. The irrevocable SBLC is drafted by the Bank.
5. The Bank fee is escrowed upon acceptance of the Bank SBLC draft.
6. The Bank fee is released to the Bank upon Client receipt of the irrevocable SBLC.
This can all happen within 3-5 business days with
immediate Client Cooperation.
Once again, the Provider Bank is an "A" rated top-world Bank and does not qualify the uses of the SBLC.
All the client needs in order to obtain the annually renewable, irrevocable SBLC is a non-criminal record and the ability to pay for it.
Please contact us for the current availability of this program, any guideline changes and if you wish to proceed forward ... request an application.
Sean Allen
Email: sallen11867@aol.com
Ph: 239-898-9281
Skype: sean.allen5
www.InternationalFinancingSoultions.com
***Please keep in mind that due to the current financial climate in the world, this program can cease to exist at any time without advanced notice. ***
I've recently lost a deal on a LOC that was rejected by Wells-Fargo. This was a few weeks ago and banking meltdown was just starting to hit. They tucked tail and ran. The funds were on deposit and verifiable.
So, question is, what's the difference in a LOC vs SBLC. And why would anyone use one if the rate is 10% of the amount of the letter with a 1% ding every month?
For one full year, that's 22%!
I really would like to understand, given what happened with my client and it costing me a $1.8MM project.
Hey Mike,
Thanks for asking....
The banks fee is roughly 10% (this will vary from bank to Bank) of the amount requested on the SBLC, not 22%. These are generally used as a security instrument to raise more collateral. Many lenders will lend against an SBLC because they feel more secure. Most times the actual money is never touched, the "borrower" is basically "leasing" the money as collateral.
Sean Allen
Huh? What is it that you do? LOCs are invaluable if they are credibe. Happy turkey day!
I build custom "green" homes. Super energy efficient, (near) zero energy homes. This happened right when the banks started to pucker. They earned a new name "sphincter boy".
Everything came to a screeching halt when it came to non-standard transactions.
I hate doing business with big banks. They want your money, but don't want to handle service.
That seems like pretty expensive money to me. 10% to hold the credit, plus a fee to the broker, and then if you use it for collateral for an actual loan, you pay interest on the money received as well. So you could easily end up with 17-18% interest for the first year.
Is there an additional charge to renew the SBLC each year? If not, then at least the 10% upfront payment could be amortized over a 5 year loan life.
Under what terms may the SBLC be drawn down? Only upon demand by the secondary lender? Or could my client draw the funds themselves rather than take out the secondary loan?
I have a client who is nearing the end of an office building construction project and may run short of funds by approx $300,000. Are there minimum and maximums on the SBLC? My client's bank will advance further funds with additional collateral, and perhaps this is a route to consider.
Tim
Hello Tim... The minimum is $10 Million for a SBLC and this would not work for what your client wants to do. Thanks for asking.
Sean Allen
The difference between an LC and a standby LC (=bank guarantee) is the type of documents you have to present to get the money. Under an LC you typically have to show: commercial invoice, bill of lading, packing list, insurance certificate. Under a guarantee you might just have to show up at the bank and ask for the money (sometimes in writing).
In my experience, Wells Fargo probably is the worst bank around, bureaucratic, slow, ...
with other banks the deal might have gone through.
In case you have technical question regarding letters of credit, check out http://www.letterofcreditforum.com , there are many experts very willing to help.
nratlos ..... Thanks for that explanation
Sean,
Not heard from you lately. You on a winter break?
Mr Sean,
I am now actively seeking the senate seat in Illinois. Any chance of a loan.
Nutsy
Hey Nutsy,
We may be able to work something out for
Political Promisses".
Sean Allen
Mr Sean,
A loan could net you big results if you want to move to Illinois.
Nutsy,
I'm sure you would fit in quite well with the other "nuts" in the Senate. Just think, you could be rubbing elbows Obama.
Sean Allen
It's great to know that this service is provided, and wehre I can find it! Thanks for the info. dar
The following are the instruments my contact can discount or trade with:
POF by swift
SBLC
BG
LC
DLC
MT103/23
MT103 ONE WAY OR B2B
Kindly advise on the ones you know your contact can do asap via financialworld@att.net.
Rgds,
Mike.
Dear Sir,
I can deliver leased instruments to organisations or individuals with their preferred text verbiage as been approved by their bankers.we also offer sales option to interested buyers our terms and procedures are so flexible and workable by RWA clients.our lease rate is (5.5+0.5)%+x%. X% Is lessee broker 's commission and he determines his commission.Also we have facilities to discount BG and put you into PPP trading.
Contact me through this email:(finanacialdraft@gmail.com)or through Skype:(besik.Katsitadze)in other to furnish you with other information.