Today’s Standby Letter of Credit and Bank Guarantee are Tomorrows Saviours
Credit facilities are becoming an endangered species. Banks are reducing the size of their loan books, resulting in many companies struggling to find access to credit facilities. The pandemic and subsequent lockdowns are placing companies in dire financial straits. How will they survive?
Companies facing financial oblivion need to turn to boutique finance houses such as IntaCapital Swiss. IntaCapital Swiss are located in the heart of the Geneva financial district and provide Leased Standby Letters of Credit and Leased Bank Guarantees. These are used for monetisation purposes and are saving companies from financial ruin.
Monetising Standby Letters of Credit and Bank Guarantees
When monetising a standby letter of credit this instrument will mirror a Demand Bank Guarantee. A Demand Bank Guarantee is used solely for monetisation purposes and has specific verbiage. This verbiage will allow for monetisation. When monetised both bank instruments are governed by ICC Uniform Rules for Demand Guarantees, (URDG 758).
Information on ICC Uniform Rules for Demand Guarantees, (URDG 758) can be found here.
Many companies will ask themselves how do I lease a Standby Letter of Credit or Bank Guarantee? There are a number of companies that lease these instruments who are called providers. IntaCapital Swiss Geneva have a data base of providers and will arrange contracts and delivery of the instrument.
2021 and Beyond
It is essential for companies to familiarize themselves with Standby Letters of Credit and Bank Guarantees. It they are to survive lockdowns and pandemics they must seek alternative funding. Monetising these two bank instruments is an amazing option. Remember, banks are reducing their loan books. Do not hesitate… Arrange new financing with a Standby Letter of Credit or Bank Guarantee.
bank guarantees, business, credit facilities, future, standby letter of credit