Here is a brief explanation of the monetization process of banking instruments.
Let's look at Standby Letter of Credit (often referred to as an SBLC). An SBLC is a bank instrument used between a buyer and a seller to facilitate international trade between these two parties that don't know each other and have different laws and regulations.
Typically, when a buyer needs to procure a product from a seller, the seller ensures that they get paid by having the buyer contact the buyer's bank and issue an SBLC to the seller's name.
This financial instrument (SBLC) guarantees the seller's payment if the buyer defaults in payment. Said differently, the bank will pay the seller if the buyer chooses not to have good faith in conducting a business transaction. These bank guarantees (SBLCs) are popular instruments because they provide different options than other banknotes.
SBLCs, for instance, can be leveraged to get a bank loan at 2x-4x the value of the SBLC. But they can also be liquidated by the seller at a discount offering immediate cash to purchase raw materials; but, more importantly, this instrument can also be leveraged in various vehicles such as private placement & capital enhancement programs.
For organizations that require a trusted brand to support them in monetizing their SBLCs, LineofCredit.AI provides a series of services.
They include:
If you are interested in purchasing an instrument, we require proof of funds and your customer information sheet (CIS)/ Know Your Clint Form (KYC).
If you are interested in monetizing a banking instrument, we require a copy of your instrument (SBLC, DLC, BG, etc.) and your customer information sheet (CIS)/ Know Your Clint Form (KYC).
