How the leased Bank Instrument Monetization Works?
The reality is that a financial instrument can technically be leased from an account holder, an asset owner, asset management company (like us) and some banks.
It has come to our attention that we received a few emails per week from different brokers all over the world asking us how come a bank instrument (SBLC, BG, MTN, Bank Draft) that it is leased can be monetized?
Their logic it is telling them that if something it is leased it can’t be monetized because it doesn’t belong to the lessor. VERY SIMPLE they say!
However, they are 100% RIGHT if they are treating a bank instrument as a simple asset, but at the same time, they are 100% WRONG about MONETIZATION. A financial instrument is used as a credit enhancement. The monetizer needs to have a credit facility with the receiving bank. The lessor can monetize a Lease Bank Instrument because when an individual or company lease any type of bank assets, just as if they leased a car, they have right to use the asset for a predetermined period of time.
Does the Bank Instruments worth something?
The Answers is YES it does.
- Bank Instruments (asset) Has value.
- It can be used by any company and/or individual with a credit facility able to monetize it and generate enough profit to pay for the monetization cost, provider fees and any loan granted to the beneficiary.
How the Attorney’s Trustees Office is able to provide a Non-Recourse or Recourse Loan with a Leased Bank Instrument?
We can assure you it is not for charity!
The reason why our attorney’s trustees will accept any type of leased or owned bank instrument (asset) for monetization and provide a Non-Recourse or Recourse loan is because they have a well thought out financial strategy via different trading programs that will pay for the loan granted to the provider, the monetization and at the same time they make a LOT of money in the process!