Monetisation & Credit Lines
Monetizing or offering credit lines against financial instruments is a key feature of the use of such financial instruments. Those instruments issued as credit security, i.e. Credit Facilities Guarantees and Letters of Guarantee are typically accepted world-wide to act as loan security.
Other financial securities such as bonds, notes, MTN’s and other forms of investments can also be used a loan security (search Securities Lending).
Borrowing funds and securing loans against financial instruments, bonds and bank guarantees in this manner is typically referred to a ‘monetization’.
At IntaCapital Swiss, we are able to provide lending and credit facilities against such security.
Lending rates and ratios depend on the strength of the security and on the status of the applicant. To find out more about what facilities are available to you, please complete our online form.
Bank Instruments such as Letters of Credit and Guarantees are frequently used but seldom properly understood.
Whilst these ‘instruments’ are utilised in conventional trading on a day to day basis, they can also be employed in complex financial structures designed to maximise financial positions and bespoke to each individual requirement.
Commonly, Letters of Credit are used for payment of shipped goods. Often referred to as L/C’s, they serve to guarantee payment to one party upon the fulfilment of certain conditions, usually based around receiving specific goods. Wording and layout of a Letter of Credit is bespoke to the purpose and the parties.
Bank Guarantees are used for guaranteeing payments in a number of given circumstances. Often referred to as BG’s. Bank Guarantees are worded specifically for the purpose and specifically written to the stated parties thereto. The use of Bank Guarantee’s are becoming increasingly common, for example in lieu of deposit payments. Applicants may opt to issue a banker’s guarantee instead of parting with a cash deposit. They can also be used for offsetting or deferring payments and can be used in intelligent financial structures.
Standby Letters of Credit (commonly called SBLC’s) are used in the US in lieu of Bank Guarantees and work in a similar fashion.
Neither Letters of Credit nor Bank Guarantees can be bought or sold nor are they tradable securities.
Our expert banking team hold a full and complete understanding of all bank instruments, letters of credit and guarantees and are able to advise our Clients on all areas of their utilisation.
- Credit Line Facilities
- Create fixed returns
- Verification and validation of communicated instruments, bonds (current and historic) and guarantees.
- Trade Finance facilities
- Offsetting and Deferring Payment Obligations
- Freeing-up locked cash and assets
To see how we can help you, please contact us. Our expert team will be fully available to assist and advise you.