Introduction

DEFINITION

bank-instrument-2

Unlike traditional letter of credit, a bank instruments is where the beneficiary obtains payment against papers demonstrating delivery, the SBLC may allow a beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond.

A key principle to remember with the instrument is a bank deal only in documents or goods and do not involve in the commitments and contracts between the two parties directly. The concern of the issuing bank is the terms and conditions of the letter of credit itself.  The decision to pay by a Bank Instrument is based entirely on whether the documents submitted to the bank appear on their face to comply with the terms of the LC (Letter of Credit).

WE OFFER ASSISTANCE:

For the realization of the projects, we can assist to arrange funding by recommending our associates who do the following:

TYPICAL BANK INSTRUMENTS TRANSACTIONS:

  • Import/Export Trade
  • Collateral for Project Finance
  • Purchase Bank Instrument (Bank Debentures)
  • Other Credit Enhancement: Purchase REO Pool/Real Estate/Businesses & Companies

BANK INSTRUMENTS TERMS:

Minimum $100M account size up to  no max (done in tranches of 500 million after 500 million)
12 months with extensions