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London 2013
Copyright© Economic Consultants. On no account may this Document (or any part of it) be copied, disclosed, or made
available to any person other than the recipient to whom it is addressed. No representation, warranty or undertaking, express
or implied, is or will be made or given and no responsibility or liability is or will be accepted by partners in Apurgo AS or by any
of their respective subsidiaries, affiliates, representatives, partners, directors, officers, employees, agents or advisers (the
“Representatives”) in relation to the accuracy or completeness of this Document or any other written or oral information
made available in connection with the Document. Any responsibility or liability for any such information is expressly
disclaimed.
MONETIZATION OF BANK GUARANTEES
Bank Guarantees (BG’s) and Stand By Letters of Credit (SBLC’s) can be Monetized for:
Cash
Placed into Trade Programs (PPP Private Placement Programs)
or a Hybrid of Immediate Cash and funds in a Trade Program.
Monetization typically takes 10 days and returns are between 50% and 90% Non Recourse,
depending on the BG and SBLC Type.
Mistake 2:
Buying a BG that is Leased – Leased BG’s cannot be monetized, they are banned industry wide. If you
buy a BG that is Leased or has the word “leased” on it. You have a worthless piece of paper you
cannot use! We offer you “unrestricted beneficiary ownership of the BG for a 12 month term” this
gives you full monetization capability at the price of a lease.
Mistake 3:
Procedures DO NOT Match – If the delivery procedures of the BG issuer do not exactly match with
the BG Monetizer you will never get the BG delivered because the two parties are incompatible with
each other. Both parties end up blaming one another and no deal ever gets done.
Mistake 4:
The No Bank Play – When your BG issuers contract with you includes them sending a MT999 or
MT799 from a non bank entity to the monetizer’s bank entity. You have been screwed. Banks will
not reply or communicate with Non Banks or private companies. Therefore a message sent from a
non bank to a bank is ignored! The issuer then claims they delivered service and keeps your money
and the Monetizer claims you never communicated with them on a bank to bank basis.
Mistake 5:
No CUSIP or ISIN Number – Some Monetizers will only accept Bank Guarantees with CUSIP or ISIN
Numbers. This means they will NOT accept a fresh cut bank guarantee, ONLY seasoned instruments.
Seasoned BG’s cost more and generally are only available to be purchased from secondary owners
not banks.
Unfortunately there are several other BIG MISTAKES clients fall into that ARE NOT mentioned
here!
The value of working with Economic Consultants is you get our expertise for FREE and that is
invaluable when you want to complete a drama free, successful transaction. If you are not a financial
instruments expert, use one!
SETTLEMENT PROCEDURES
NCND & FPA – Non Compete Non Disclosure Document / Fee Protection Agreement
CIS – Client Information Sheet for BG’s or SBLC’s
Passport – Full Colour Copy Required
Copy of the BG or if the BG has not been issued a copy of the BG Issuing Agreement
OTHER INFORMATION
The issuance of a bank guarantee is a private transaction and does not result in the issuance of any
publicly tradable instrument. Bank guarantees are not trading securities, trading debt instruments, or
trading investment funds. There is no public market for the trading of bank guarantees. For more
information please go to http://economic-consultants.com/funding/bank-guarantees/
Brokers Fees:
We Always Protect Brokers! Brokers should have the client sign a separate FPA (Fee Protection
Agreement) with then confirming a separate payment to the broker. We would recommend the FPA
as this gives you direct protection with your client.