Monetizing bank instruments is the process of liquidating such instruments by converting them into legal tender.

• Most to 85% depending on the face value of the instrument
• Minimum face value of any bank instrument must be over USD 5 million.
• Principles only.
• Money can then be put into trade depending on platform requirements.
• Proof of ownership will be required.
• Can be existing instrument or an RWA letter from issuing bank if fresh cut, or
• Contract with collateral provider if they are providing instrument.
• No leased or assigned instruments will be accepted.
• Great way to fund projects.

Procedures for Monetizing Bank Instruments

The lender provides monetization (lending) on the following financial instruments. The “Loan to Value” is based on instrument type, issuer, rating, coupon size, subordination type, maturity and backing of the instrument (cash or asset). If you do not see your instrument listed, please call as the lender will accept other instruments on a case by case basis.

• Bank Guarantee (BG)
• Standby Letter of Credit (SBLC)
• Medium Term Note (MTN)
• Bank Draft Check (BDC)
• Government Bond (GB)
• Proof of Funds (POF)
• Safe Keeping Receipt (SKR)
• Certificate of Deposit (CD)
• Letter of Credit (LC)

1. Borrower submits KYC/Instrument documentation. Borrower provides a KYC package (client information sheet, color copy of financial instrument, color copy of passport, articles of incorporation, corporate certificate of good standing, non-solicitation & authorization to authenticate/verify) and an executive summary/use of funds detailing the client’s project or funding request. We mutually prepare and submit client’s documentation to the Lender with supporting documents to clear compliance.
2. Instrument verification. If the financial instrument exists, an authorization to verify & authenticate is required. If the instrument has yet to be issued/cut, the lender will require a bank readiness letter or fully executed contract between the borrower and instrument provider.
3. Requirement for acceptance of the borrower’s bank. The borrower’s bank must be a rated bank by Fitch, Standard & Poors or Moody’s. If the bank is not rated, the lender will evaluate on a case by case basis only.
4. Lenders acceptance and issuance of the secured loan agreement (SLA). Once compliance is cleared, lender immediately issues a secured loan agreement (SLA) and irrevocable fee protection agreement (IFPA) outlining the full details of the monetization (loan), to include: terms, loan to value, delivery instructions and fees.
5. Commencement of transaction. Upon final review and execution of lenders documents (SLA and IFPA), the client will engage their bank to issue the appropriate transfer protocol (MT760, MT542, DTC Free Delivery or Euroclear Free Delivery) for the financial instrument. The lender will allow 3 banking days after both parties fully execute the SLA & IFPA to deliver the financial instrument as previously agreed. Extensions will be considered on a case by case basis.
6. Transfer protocol. All financial instruments will be transferred via MT760, MT542, DTC Free Delivery or Euroclear Free delivery. All instruments must be freely transferred in the name of the lender (as beneficiary) to the pre-designated account on the SLA. All language for transfer protocol will be discussed and clearly accepted by both parties prior to the actual transfer.
7. Loan disbursement. Upon receipt of the financial instrument, the lenders bank will complete its due diligence and final SWIFT confirmation. Upon confirmation of the financial instrument, the Lender will begin moving funds or secure the credit line/facility to fully fund the loan. This process takes 10 – 15 banking days from confirmation of the instrument and will be clearly outlined and agreed to within the language of the SLA. A wire schedule will be finalized between the borrower and lender within the 10 - 15 banking day window, typically every other day until the loan is fully funded (typically 1-2 weeks total, depends on loan size, borrower’s bank capabilities etc.)
8. Beneficiary/assignment status of the bank. The lender will maintain the “Beneficiary” status of the financial instrument during the length of the SLA (1 year).
9. Expenses for extension. The SLA can be extended beyond the 1 year term, however, an extension fee will be required for such request. Extensions are on a case by case basis.

Any fees or charges will be fully disclosed. We will let you know the “likely” fees  as we know them.

Documents Required
We ask that you provide complete and accurate information on all of your application and supporting documentation. Any missing information or misrepresentation only slow down the process.

1. Client Information Sheet
2. Color Copy of Passport
3. Non-Solicitation Agreement
4. Color Copy of Instrument or Bank Readiness Letter (one or the other is mandatory)
5. Authorization to Authenticate
6. Corporate Resolution
7. Corporate Certificate of Good Standing & Articles of Incorporation
8. Executive Summary for Project
9. Proforma(s) for Project (use of funds, cash flow, sales, stabilization etc…) – must be complete
10. Legal Reference (financial institution or legal firm)
11. Genealogy of Consultants (approved by client)
12. Resume of Developer and List of Projects Completed
13. Feasibility Study
14. Breakdown of Funds already invested in the project
15. Comprehensive Exit Strategy

As a reminder and for purpose of clarity, this is not an investment opportunity with BEI Financial Group. Should you meet our qualifications, you will be ideally matched with a financial institution that has agreed to accept your application for funding.

We invite you to contact us regarding any or all of these services by filling out the contact form below.