MONETIZATION

What does the LTV (Loan To Value) or percentage of the face value that the monetizer offers you in exchange for the financial instrument or loan against it depend on?

  • The classification of the bank that issued the instrument. Tier 1 or Top 25 banks obtain a higher LTV percentage and are of greater interest to the monetizer.

  • The face value of the instrument and the terms on which it is issued. The instrument must be in a condition to be monetized and have an optimal verbiage.

  • Consideration should also be given to the time that has elapsed since the date the instrument was issued, or whether it will be issued directly to the monetizer.

  • The rating and jurisdiction of the receiving bank.

In order to monetize a financial instrument such as an SBLC (Standby Letter of Credit), the instrument must already have been issued, ideally from a bank with an excellent rating. The client must be in possession of it and have legal documentation giving them the control over the issued instrument. It must be unencumbered and verifiable through a recent RWA (Ready, Willing & Able) letter from the issuing bank which verifies that the instrument is transferable and is not being used for any other purpose.

Monetizing a bank guarantee means raising finance or a credit line against it. If you have Bank Guarantee (BG), you can be able to monetize it. For bank guarantee monetization and to raise finance against it, it’s paramount that the bank guarantee has been specifically formulated for the purpose of raising finance. Monetizing Bank Guarantee liquidates the bank guarantee and uses them as reinforcement for cash. Almost any bank guarantee all over the world can be used to fund a project. A Bank Guarantee can be leased or owned. We Monetize bank instruments at a very competitive LTV % ratio.  Business can be successful if it has the necessary capital. If you have a good business idea and the obstacle is lack of funds, we are here to fulfill your dream of a successful business. We lead in financial institution monetization. 

DO YOU REQUIRE A MONETIZATION SERVICE TO CONCLUDE YOUR DEAL?