Before you go ahead and buy any of the bank instruments, you must make sure that you understand the terms and conditions of the same along with the benefits and how to do it.
Not everyone is well aware of what are bank instruments, what the benefits are and what these SBLC; BG providers actually do to help you monetize the instruments.
What is bank instrument monetization?
Monetizing Bank Instruments is the process of liquidating such instruments by converting them into legal tender. We can monetize or lend on just about any bank instrument to be used for project funding, move them into various trading platforms quickly and easily, as well as creatively incorporating them into financing certain development projects.
A lot of financial institutions and other bank and finance companies provide you various opportunities to monetize your instruments; such as – MTN's (Medium Term Notes), BG's (Bank Guarantees), LOC's (Letter of Credit), SBLC's (Standby Letter of Credit) etc.
What are the options available for monetizing your bank instrument?
There are a few options available for you when you need to monetize your bank instruments. They are –
1. You can monetize the instruments for cash.
2. You can also monetize the instrument for Trading Platform entry.
3. Or the third option is when you can monetize your instrument for both Trading Platform entry and Cash.
What are the requirements for bank instruments monetization?
There are a few terms and conditions for monetizing your bank instruments. These terms and conditions may vary depending on different banks and financial organizations. However, the most common terms and conditions are –
1. The bank instruments should be owned by you. You should have the ownership.
2. Any bank instruments from all top banks and financial institutes are accepted.
3. There are no up-front fees (in most banks).
4. The financial instruments should be owned.
5. It is fine if there are no big projects in hand.
6. You as a client must be in full control of the bank instrument. And you have to be capable enough to deliver the instrument to the financial institution.
7. The instruments must have a minimum face value as determined by the bank.