Capable funder to fund international business project in non recourse loan through monetization of SBLC or BG.
What is non recourse loan ?
A non-recourse loan is a type of loan secured by collateral, which is usually a bank instrument like SBLC or BG. This bank instrument will then go through monetization process and enter into Private Placement trade program.
Therefore through careful planning, the trade program can make huge profit and is sufficient to cover the cost of the instrument and the loan granted to the borrower.
Monetize SBLC/BG to obtain a non recourse loan
Monetizer gives a non-recourse loan against the SBLC/BG from the applicant borrower. SBLC is the collateral against which a credit line can be made available.
Hence, when a applicant borrower leases a SBLC, he can then get hold of a monetizer. After that, the monetizer can take over the SBLC paper and provide a non-recourse loan against it. A non-recourse loan is a loan that the applicant doesn’t need to pay back.
On top of that, top rated bank leases SBLC the price is between 10–12% inclusive of commissions. So the applicant has to pay 10–12% of the face value of the instrument to the provider. The instrument is valid for 1 year 1 day. As a result, monetizer who takes over the SBLC can provide the loan amount of 65% Loan-To-Value(LTV) of the SBLC face value.
In other words, monetizer is willing to pay such a high LTV because the SBLC can trigger his/her credit line in the bank. With the credit line, monetizer can make profits through trade program over a period of 1 year.
Since private placement program usually trade Medium Term Notes(MTN), the monetizer can reap huge profits that can easily cover the cost of the loan and SBLC cost.
In summary it is a two step process – get a bank instrument from a provider and then get it loan from a monetizer.
Working terms & conditions
- Country eligible – Most countries, except sanctioned countries.
- Industries eligible – All industries except Military, illegal Money Laundering.
- Accepts start up project or project in progress.
- Can loan up to 100% of project needs.
- Fund size from EUR 5 mil- EUR 250 mil per tranche.
- No need to payback the loan.
- Fund disbursement in tranches of
- 1st time -20%,
- 2nd time-20%,
- 3rd-12 time – 6% x 10 =60%
- Borrower/client to fill up the application forms, including
- Customer Information Sheet (CIS)
- Letter of Intent (LOI)
- Company resolutions
- Applicant to sign Non-Circumvention and Non-Disclosure Agreement (NCNDA).
- Borrower / applicant must pass KYC process and pays €10,000 professional fee during application stage.
- Borrower must demonstrate capability to provide collateral deposit to
funder (as project financial guarantee).
- Only for serious borrowers / applicants who can accept the use of bank instruments for project funding.
- Borrowers / applicants must agree with funder procedures.
- No change to closing procedures.