Monetization of financial instruments involves converting these instruments into cash or credit. In essence, it is a strategic financial maneuver that allows the holders of such instruments to leverage their value for liquidity, investments, or other financial needs.
• SBLC are financial guarantees provided by a bank on behalf of a client.
• Commonly used in international trade, an SBLC assures a beneficiary that they will receive payment in case the client fails to fulfil their contractual obligations.
• Monetization of SBLC involves leveraging their creditworthiness to access funds for various purposes.
• BGs serve as a commitment from a bank to cover a loss if a party fails to meet its obligations.
• Monetizing a Bank Guarantee involves using its inherent value to access financing, often for large-scale projects or investments.
• Minimum Transaction Size: 10,000,000 USD - EUR.
• No Maximum Transaction Size: This flexibility accommodates a wide range of financial needs, from mid-sized transactions to large-scale ventures.
• Maximum 80% Loan-to-Value (LTV): This conservative LTV ratio ensures a balanced risk approach, providing access to substantial funds while maintaining a margin of safety for all parties involved.