Instrument & Service Description
We offer 3 Standby Letter of Credit Monetization (SBLC) settlement methods:
1/ Bank SWIFT –
We use the Bank SWIFT Network to have the Standby Letter of Credit (SBLC) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.
2/ Euroclear –
We use the Euroclear Network because the Euroclear settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incur any SWIFTING FEES or Delays. Euroclear is a well-established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully employing over 3.500 people today.
3/ DTCC –
On some deals we now also accept delivery of the Owned Standby Letter of Credit (SBLC) by DTC also known as DTCC (The Depository Trust & Clearing Corporation). The advantage of DTC is that clients using this process to deliver an Owned Standby Letter of Credit (SBLC) DO NOT incur bank SWIFTING FEES.
DTC is a well-established International business that was founded in 1999 and in 2015 was recorded as settling 1.5 Quadrillion Worldwide making its the highest value securities settlement processor in the world.
EC’s Standby Letter of Credit Monetization services are ideal for clients looking to Discount, Monetize, or create an immediate Non-Recourse loan against an Owned Standby Letter of Credit (SBLC) that they control.
The Standby Letter of Credit Monetization process for an Owned Standby Letter of Credit (SBLC) issues Non-Recourse funds to the Client shortly after the Standby Letter of Credit (SBLC) is delivered to the Monetizer.
Important
We can purchase the Owned Standby Letter of Credit (SBLC) outright or allow the client to retain full ownership of it and create a Monetized Non-Recourse payment against the Owned Standby Letter of Credit (SBLC). Most clients prefer to retain ownership and take the Non-Recourse payment.
Our contracts also include the monetizer returning the Owned Standby Letter of Credit (SBLC) to the Issuing bank 15 days prior to the Standby Letter of Credit (SBLC) expiration.
Standby Letter of Credit Monetization LTV
- Standby Letter of Credit (SBLC) Sale – 80% Non-Recourse
- Standby Letter of Credit (SBLC) Monetization – 70% to 80% Non-Recourse
Estimated Completion Time
7 to 14 Days after all documents are signed and verified or 3 to 4 Days After Instrument Delivery on the SWIFT or Euroclear Networks.
Closing Process – SWIFT
- After execution of the Standby Letter of Credit Monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
- The Monetizers bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
- On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Standby Letter of Credit (SBLC) by SWIFT MT760 to the Monetizers bank.
- Upon receipt, confirmation and delivery of the SWIFT MT760 the Standby Letter of Credit Monetizer will within maximum four (4) banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.
- The Standby Letter of Credit Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Closing Process – Euroclear
- After execution of the Standby Letter of Credit Monetization contract by both parties the Client will instruct his bank to assign the Standby Letter of Credit (SBLC) using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.
- The Clients Banker shall immediately email a certified Euroclear execution receipt of the Standby Letter of Credit (SBLC) delivery to the Monetizer.
- Upon receipt and confirmation of the Euroclear assignment and delivery, the Standby Letter of Credit Monetizer will within maximum three (3) banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.
- The Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Critical Compliance Criteria
Accepted Criteria:
The Owned Standby Letter of Credit (SBLC) MUST be from a Rated Bank and Delivered by SWIFT or Euroclear.
Rejected Criteria
Any Owned Standby Letter of Credit (SBLC) on the Banned Assets or Banned Providers List is Rejected.
Client Standards
We require clients meet key standards and pass compliance for us to consider working with them. We do not accept all clients because doing business with EC is a unique Privilege given solely to real, genuine, authentic clients, not a Right that is attainable by all.
Summary
We solely deal with real deals, real people and real Owned Standby Letter of Credit (SBLC) that need real monetization. The Euroclear and the Bank SWIFT Network is the Gold Standard that validates that your Owned Standby Letter of Credit (SBLC) is real and it provides a respected industry platform where guaranteed settlement can be facilitated. Close your successful Standby Letter of Credit Monetization transaction with us.
Application Procedure
In order for you to get started please download the EC CIS for Monetizing Bank Instruments, complete and send to info@economic-consultants.com.
We will follow up sending you our EC NSNC NDA.
With that in place we have done our KYC and we will send you our Service Agreement for Monetizing Bank Instruments.
By then we have a Pre-approval for your request in place and we will send you the final application for you to sign and return to us.
Then we will get you the LOI/MOU. The whole process should take between 15 to 25 days after the first payment is made.
NB! Changes may occur without warning!
