What is the Purchase Own a Bank Instrument such as BG or SBLC?
When a buyer purchases a bank instrument from a provider, it means that the buyer can cash the instrument at the end of the year for the full face value.
How can a Provider Sales an SBLC or BG for 50% of its Face Value?
When a provider sale a bank instrument is because they have a financial strategy that is well thought via different trading programs or platforms that with the cash received from the sale of the bank instrument, they can reinvest the cash for the full year in the commodity market and will, in turn, pay for the bank instrument itself, and during this process, they will also make a LOT of money!
For Example, let’s say you purchase a BG or SBLC from The Hanson Group of Companies with 100 Million Euros face value to be cashed in one year, and one day, you will pay 50 Million Euros to the company in cash. The company will deliver to you the purchased own BG or SBLC. At the end of the year (1 year and 1 day), you will double your money 100% guarantee by the bank instrument. However, in the meantime, once the funds are received from the buyer on day 1, The Hanson Group of Companies will place those 50 million into the trade market generating at least “10%” (more or less) of profit each time they invest the funds. The Hanson Group will get into a JVA with a trading platform that has “for example” a pre-arrangement with a “Sugar Wit” to deliver 1 container of sugar per week for the full year, and each container will give them 10% of profit, each year has 52 weeks, meaning that when you take that 10% and multiply it for 52 weeks that a year has, the total profit (NOP) will be 520% (260,000,000 Million Euros) of the funds received by the buyer, giving the Hanson Group of Companies enough funds to pay the 100% of the face value of the bank instrument sold to the client and a lot of profit left over to split between The Hanson Group and the trading platform (JVA)!
What Parts do Banks Play in BG / SBLC Transactions?
The Bank is not the Initiator but the Deliverer of the Transaction.
Technically speaking, “Banks DON’T issue Bank Guarantees or Standby Letters of Credit” Instead, the bank is the deliverer, not the initiator of the transaction; they CONFIRM their client has sufficient funds. The Bank is just the delivery courier who works for the BG and SBLC Provider, the actual asset owner, asset holder, or asset manager. For example, let’s pretend you use a courier to deliver a parcel to a customer. You are the Provider of the parcel, and the courier is the delivery agent who delivers your parcel to the Receiver. The courier isn’t the Provider of the parcel. They are just the delivery agent whom the Provider uses to send the parcel from the Provider’s location to the Receivers location.
Using the illustration above, banks treat Bank Guarantees and Standby Letters of Credit the same way. The bank serves as the courier and receives a financial order from a supplier to send to the receiver’s bank one of the providers’ assets (BG or SBLC). In other terms, the banks are instead of the courier, becoming the most widely known as MT messages as the Sender and Recipient of SWIFT messages. (If it’s MT760, MT799, and so on).
Apart from receiving fees for “cutting” (initiating) and “delivering” the Bank instrument, the Bank holds no interest in the transaction. As the financial instrument was launched and secured since then against the cash position in the Bank account of the Provider at the issuing Bank, all other responsibility for the asset is theirs.
Why Banks Don’t Sale Bank Instruments BGs or SBLCs
If a bank wants to raise Capital, it DOESN’T uses BGs or SBLC because the bank either issues:
A/ Bank Bonds
B/ MTNs (Mid Term Notes)
C/ Bank Stock or Shares
- The Bank NEVER uses its cash to secure or encumber a Bank Instrument BG or SBLC. In the Bank, BG or SBLC are secured against client cash accounts of the Provider.
- BGs and SBLCs are niche market client products instead of Bank products created at high net worth Bank clients’ requests with significant cash holdings at the Bank.
- Tell the Bank Officer at your local World Top 25 Bank Branch that you want to buy a Leased Bank Guarantee. As BGs or SBLCs is NOT a publicly offered Bank product, most will not know what you are talking about. They will tell you that bank instruments such as BGs or SBLCs cannot be sold nor lease. They are only privately available to high net worth Bank clients with having enough funds to cut the instrument against the funds in their own Bank account.
- You need to have a Bank account called a custodial account to issue a BG or SBLC as a provider. A custodial account is a particular Bank account that can release, receive, and hold financial instruments. Establishing a custodial account at a bank takes three months+ and costs approximately €250,000 to 350,000 Euro during setup. Such accounts are generally made available to the Top 1% of Private Banking clients only. You cannot just walk into a bank and ask to set up a custodial account!
- Once a client has a custodial account, it can then issue BGs and SBLCs and sell it to any clients not as a bank product but as his own bank instrument as a provider since the bank plays no part of the sale agreement between the provider and the buyer.
Why are Bank Instruments Providers so Hard to Find?
- Issuing BGs & SBLC requires a very specialist financial skillset. Therefore, there are very few genuine BG or SBLC Providers, and most High Net worth Investors do not have the expertise and time to involve themselves with the issuing process of the bank instrument.
- It is a reality that you need the bank instruments Provider much MORE than they need YOU! Genuine Providers are VERY selective with who they choose to do business with as they have more clients than they need!
- High Net Worth corporations are usually the Bank instruments Providers who have other ways of investments available.
- As the Monetizer fails to perform as per transaction procedures, 80% of BGs and SBLCs provide deliveries to third Party’s Monetizers FAIL.
- The Bank Instrument world has many silly investors having no idea about how a band instrument works and what it is for and mistakenly believe that the BGs and SBLCs fall from heaven for FREE with no Upfront Fees and the world owes them a living.
Purchase Own a BG or SBLC
You can implement only one way to purchase a BG or SBLC. And is to use a bank instrument provider like ourselves to fill out a DOA (deed of Agreement). Terms and timelines are NOT negotiable. We emphasize that before signing, buyers will fully understand the papers. Double-check your information, be consistent and accurate because it can be an incredibly costly error.
Read the Bank Guarantee (BG) – Purchase Owned Application & Agreement Below