Securities Financing
What can a bank instrument be used for?
Bank instruments can significantly improve your chances of getting a loan from your bank. The instrument can thereby be used as collateral for your bank.
Through our partners, we can provide you with bank instruments that are 100% cash-secure.
Only instruments of the top 25 banks worldwide are offered, e.g. from HSBC, Deutsche Bank and UBS. This significantly increases the acceptance of these bank instruments.
All instruments rented through our provider are available, assignable, transferable and attachable.
Securing a commodity trade, combined with the instrument payment, by the expected profit of the transaction is not possible. But with proper use and payment, the different instruments offer many lucrative options. We can, for example, Provide BGs, MTNs, BONDs, SBLCs, and CDs that can be blocked or delivered via SWIFT.
To successfully apply for a standby letter of credit (SBLC), there are four important points to consider:
- You need to have a promising project
- You must have a bank that will finance your project based on the supporting collateral of a leasing instrument.
- You must have the money to pay for the leasing of the instrument. You may also have to pay intermediaries if they are involved in the transaction. However, we are paid by the provider, not by you.
- You need to have a credible and realistic exit strategy to repay the loan and return the instrument at the end of its life cycle.
Proof of Funds (POF)
We can offer a proof of financing (POF) from a first-class European bank valid for one year and renewable in accordance with the terms of the lease.
Here are the relevant details:
1. Lease:
a. The borrower should submit the application form in order to lease a financial instrument using the “without prior consultation” procedure; This procedure, which is already familiar to you, remains unchanged step by step, with the exception of the payment of leasing fees and the return of the leased item, for which you should refer to the following points b. and c. respectively.
b. The borrower can arrange the payment of the leasing fees by means of a (attached) borrower’s note loan guaranteed by his bank (a European bank of first class), with the expiring date being negotiated (30, 60, 90 days, etc.).
c. The lender will authorize the borrower’s bank to encumber the security against an official letter signed by two bank clerks, which obliges the security to be returned in full 15 days before the due date, free of any liens.
2. Bank Instrument Discount: An arrangement is made between a provider company – who is willing and able to exchange the financial instrument for a “PROOF OF FUNDS” in cash – and the company that owns the instrument (borrower).
3. Proof of funds (POF): POF can be used for entering into a trading program, as collateral for a credit line, etc.
POF-Process
1. The customer will apply to rent the bank instrument
2. Lessor sends the agreement
3. The customer will pay the billing fees
4. The customer receives the company’s invoice, order processing and configuration
5. At that time, the client signs an agreement with another company, and the banker of that company sends the obligation to return the instrument 15 days before its due date back to the supplier
6.Now the transaction is completed … the client sends the lender a confirmation of liability issued by his bank for the leasing fee
7. Immediately upon receipt of the confirmation of liability, the bank instrument will be made available
8. The bank deposits the money in a new account with the name of the client, locks the money and provides the proof of sufficient financial resources.
Frequently asked questions
The most common questions our customers ask us.
Yes, Our provider works directly with many financial institutions which can provide leased bank instruments. When leasing banking instruments (bank guarantees, medium term notes) , the key is having the ability to verify the instrument. Our provider offers the highest degree of transparency of any leased asset company, while providing only the best sources to ensure you get what you paid for.
Most your traders will accept your leased bank instrument to enter into a private placement program. Many lease bank instruments and proof of funds to enter into private placement, and then use the proceeds to fund international projects. This is a great way to benefit from bank instrument leasing, since it can provide immediate funding for almost any need.
Programs for private placements are not offered by our provider. However, you can use leased bank instruments and proof of funds. But to be successful, they should be handled by leasing and trading professionals.
It is possible to lease the Proof of Funds or bank instruments up to 1 year. Afterwards we can renew the contract at the original price. Your asset can be assigned for as long as you need it to be.
At the moment we are offering cash proof of funds statements up to 1 Billion USD. But we can offer higher amounts for leased bank instruments, if needed. The amount is sufficient for almost every leased cash account inquiry we have ever encountered. If you are thinking about bank instrument leasing, we can also meet leasing demands up to 50 Billion USD. This can help you to generate funding from your leased instrument to meet any project’s requirements.
Yes. Both, SBLC and bank instrument can be leased by the provider. They are backed by cash, so they serve the same purpose to display concurrently. Leasing an SBLC can give you the possibility to improve your credit, profit from the investments and gain funding.
The SBLC can be used in a number of scenarios in your favor. All you need is a small fraction of the par value to lease it.
Many different forms of leased proof of funds can be issued by the provider, among them are the Swift MT 760 or MT 799. Usually, the leased bank instruments or leased proof of funds are blocked in the name of the customer or the trader they are working with. They achieve this through the use of Swift MT 760. Basic communications are often made by using MT 799. This permits the customer to lease collateral maybe needed for different types of investments or loans.
For various transactions the proof of a financial capability is needed. Leasing Proof of Funds is an instrument to assure that you don’t miss out opportunities which require the proof of money. Other leased instruments such as Leased Bank Guarantees can also be used as a method of showing Proof of Funds. Without adequate Proof of Funds, you will have little chance to participate in large transactions, as they all require evidence of high net capacity.
If you have a Leased Bank Instrument (such as Leased Bank Guarantee) or a leased Proof of Funds, you now can prove that you currently have this amount. If a bank or credit institution attempt to verify that you have sufficient collateral, they would not be able to detect it is leased.As the leased Proof of Funds or other bank instruments are under your name, nothing leads them to believe that the funds are leased. So once your proof of funds is verified you can access the loan.
All instruments can serve you in having enough collateral for a loan or an investment. In case you are looking for funding or loans, lenders always would like to see you having collateral to back up your need. With an SBLC, Bank Instrument or Proof of Funds, you could prove that you are having enough collateral. They do not have not way to know it was leased.
There are different costs for an SBLC, Bank Guarantee, Proof of Funds or Bank Instrument. It is a percentage cost per year. We are guaranteeing you the lowest price. Though it is more important that the instruments meet your specific needs. Each customer looking for leased instruments or proof of funds have a different scenario in which they will use it.
For new applicants, the provider would be happy to provide a sample Proof of Funds letter. If you are interested in a sample, please contact us and we will send you the application documents. You will see that a bank Proof of Funds letter is quite simple, but it will attest the funds being in your name and account with entire bank responsibility. This allows lenders, traders and others to validate that the proof of funds is attached to your name and to no one else. In case your bank is asking for a specific text for the proof of funds, you can send it to us and the provider will see if he can comply with your request.
If you have further questions or need more detailed information, please do not hesitate to contact us via the contact form.
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