Funding or
monetizing SBLC is one of the most profitable things any business man can do for
his business. The best thing about monetizing SBLC or any other bank instrument
is that you earn a form of trust among your sellers and that helps you a lot in
your business both locally and internationally.
There are
plenty of bank instruments like the Bank Guarantee, SBLC, Letter of Credit and
many others which can be monetized and used for the benefit of your business.
However, speaking of Standby Letter of
Credit Monetization can be termed as quite an ideal deal for clients
looking to Discount, Monetize, or create an immediate Non
Recourse loan against a Leased Standby Letter of Credit (SBLC) that they control.
There are a few kinds of SBLC that
you can monetize and they are –
- Bank SWIFT
- Euroclear
- DTCC
- Bloomberg
These can vary depending on the type of bank and institution you are approaching
There are plenty of reasons why
anyone should be monetizing an SBLC – one of the most important things about
funding or monetizing an SBLC is that it allows you to gain the required trust
from the lender or the seller. What SBLC does is that, it provides a guarantee
to the seller that in case you are unable to pay the seller; your bank will pay
on behalf of you.
However, as
the SBLC providers issue one of these letters to the
seller, agreeing to make payments for the goods being sold if the buyer
defaults. This way, the seller feels secure in the purchase because the bank is
obligated to pay if the buyer fails to. In short, it ensures payment for the
product being sold.
Although this is a great way to be
secured, a lot of people don’t yet know the importance of monetizing the SBLC.
The most important reason you need them that it is a security which allows you
to be on the good side of the buyer because whenever anyone sells something, they want to be sure the buyer can pay
them back in full like they promised. The seller may be unwilling to complete
the transaction if you can’t prove that you can pay them back. You need
something that proves you can pay what’s due, which is when standby letters of
credit become necessary.
Buying or selling SBLC is one of the best decisions any buyer can make.
Make sure to get the most out of it.
