GLOBAL CENTRIC FINANCE
Empowering Growth
Complete Owned Standby Letter of Credit Monetization (SBLC) Non-Recourse
Instrument & Service Description
We offer 3 Standby Letter of Credit (SBLC) Monetization settlement methods:
1/ Bank SWIFT – We use the Bank SWIFT Network to have the 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.
3/ DTCC – On some arrangements we now also accept delivery of the Owned 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 SBLC DO NOT incur bank SWIFTING FEES. DTC is a well-established International business that was founded in 1999.
GLOBAL CENTRIC’s SBLC Monetization services are ideal for clients looking to Discount, Monetize, or create an immediate Non-Recourse loan against an Owned SBLC ) that they control. The SBLC Monetization process for an Owned SBLC issues Non-Recourse funds to the Client shortly after the SBLC is delivered to the Monetizer.
Please Note: We can purchase the Owned SBLC outright or allow the client to retain full ownership of it and create a Monetized Non-Recourse payment against the Owned SBLC. Most clients prefer to retain ownership and take the Non-Recourse payment.
Our contracts also include the monetizer returning the Owned SBLC to the Issuing bank 15 days prior to the SBLC's expiration.
SBLC Monetization LTV:
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SBLC Sale – 80% Non-Recourse
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SBLC Monetization – 80% Non-Recourse
Estimated Completion Time
14 to 21 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
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After execution of the SBLC Monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
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The Monetizers bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
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On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the SBLC by SWIFT MT760 to the Monetizers bank.
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Upon receipt, confirmation and delivery of the SWIFT MT760 the 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.
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The Monetizer agrees to return the SBLC unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Closing Process – Euroclear
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After execution of the SBLC Monetization contract by both parties the Client will instruct his bank to assign the SBLC using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.
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The Clients Banker shall immediately email a certified Euroclear execution receipt of the SBLC delivery to the Monetizer.
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Upon receipt and confirmation of the Euroclear assignment and delivery, the 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.
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The Monetizer agrees to return the SBLC unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Critical Compliance Criteria
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Accepted Criteria - The Owned SBLC MUST be from a Rated Bank and Delivered by SWIFT or Euroclear.
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Rejected Criteria - Any Owned SBLC on the Banned Assets or Worldbank's Banned Providers List is Rejected.
Client Standards
GLOBAL CENTRIC FINANCE requires clients meet key standards and pass compliance for us to consider working with them. We do not accept all clients because doing business with GLOBAL CENTRIC FINANCE is a unique privilege given solely to genuine clients, not a Right that is attainable by all.
Summary
The Euroclear and the Bank SWIFT Network is the Gold Standard that validates that your Owned SBLC is valid and it provides a respected industry platform where guaranteed settlement can be facilitated. Close your successful transaction with GLOBAL CENTRIC FINANCE.
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