FAQ

General Questions

A Standby Letter of Credit (SBLC) is a document issued by a bank that guarantees payment on behalf of a client, ensuring the beneficiary receives payment if the client cannot meet their financial obligations.

SBLC issuance involves a bank creating and providing an SBLC on behalf of a client after evaluating the client's creditworthiness. This guarantees payment to a beneficiary if the client defaults.

A Standby Letter of Credit (SBLC) is issued by a bank or a financial institution. The issuing bank guarantees payment to the beneficiary on behalf of the client if the client fails to meet their financial obligations.

SBLC monetization is the process of converting an SBLC into liquid funds by using it as collateral to obtain a loan or line of credit, thereby providing the client with immediate cash flow.

Monetization unlocks liquidity from SBLCs, providing immediate cash flow, favourable terms, and enhanced financial flexibility without selling equity or taking on traditional debt.

Yes, an already issued Standby Letter of Credit (SBLC) can be monetized.

Loan-to-Value (LTV) is a financial term used to express the ratio of a loan to the value of an asset purchased or the value of collateral used for the loan.

Non-recourse in SBLC monetization mean that the lender's recourse is solely limited to the SBLC itself in case of default. This ensures that in the event of the borrower failing to meet the repayment terms, the lender's recourse is exclusively limited to reclaiming the SBLC.

Yes, the Loan-to-Value (LTV) obtained through SBLC monetization typically needs to be repaid. The specifics of repayment depend on the terms of the monetization agreement.

SBLC discounting involves selling an SBLC at a discount to a third party for immediate cash.

PPPs are generally accessible to high-net-worth individuals, institutional investors, and other qualified participants who meet the benchmark set by the trading platform.

The Bullet Trade, or Small Cap Trade, offers a minimum investment period ranging from 5 days to 10 days.

PPPs are exclusive investment opportunities offering high-yield returns. They are designed for high-net-worth individuals and institutional investors, providing dynamic fund flows and increasing trade avenues.

Enrolment in PPP depends on the availability of the program and the specific terms set by the trade platform.

Withdrawals during the PPP trade period are subject to availability and specific terms outlined in the investment agreement.

Yes, during the PPP, funds remain blocked in the investor's account to maintain security and stability throughout the transaction. Funds withdrawal provision is available.

KYC/CIS and AML are required for enrolling. Bank documents are also required as transaction proceeds.

The minimum investment required for participation in a PPP is $1 million, although this amount can be subject to adjustments under the trade platform's conditions.

SBLC discounting involves selling an SBLC at a discounted value for immediate cash, while SBLC monetization uses the SBLC as collateral to secure a loan, often resulting in a higher funding amount but requiring repayment.

Unique financial mechanisms, algorithms and strategies that often involve high-yield investment opportunities are used.

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