Who Is A Genuine BG/SBLC Provider No Upfront Fee?
A Genuine BG/SBLC Provider No Upfront Fees is a bank or other financial institutions that can issue a bank guarantee or standby letter of credit (BG/SBLC) free of charge without demanding any upfront fees from the customer. And I can tell you that this is exactly why some BG/SBLC transactions fail? Most BG SBLC transactions fail because of GREED and unworkable procedures.
You cannot tell an airline to first fly you to your destination before you pay, it doesn’t work like that. You will first need to purchase an airline ticket before you board an airplane. If I want to travel from Hong Kong to London I have to first buy a plane ticket, no airline will take me to London before I pay. Same scenario is applicable to bank instrument transactions.
The truth is that many people have been scammed in the process of securing a bg/sblc, and as a result of having a bad experience those same people made up an investment decision that they would now only enter a transaction if they did not have to risk any money or put any money up front. This effectively created a rule that prevents them from having ANY success or EVER completing ANY BG/SBLC transaction because without money paid upfront to cover the bank costs, NO deal will ever get concluded!
VERDICT: There is no such thing as a free BG/SBLC without upfront fee. You will need to pay the bg/sblc fee to get the bg/sblc issued and delivered to you.
When choosing a bg/sblc provider in a transaction, you need to make sure that they are legit, and that they will do what they say they will do. First of all, you should carry out a due diligence on the bank instrument provider to find out if they are legally registered and also check how many years they have been in the business. Personally I wouldn’t trust my money with a new company that is a few years old.
I would rather work with a reputable bg/sblc provider that has been providing bank instruments such as bg/sblc for decades.In moving forward, we need to understand that banks do not advertise SBLC as part of their everyday banking products, the reason behind this is simple, banks are not allowed to.
Standby Letters of Credit (SBLC) are provided by high net worth clients with a large cash holding in a bank account. These high net worth clients usually have investment portfolios which include hedge funds, private equity, pension funds etc and these individuals can be truly hard to get in touch with, either because they choose to remain anonymous or they are just straight-up busy individuals.
If you are in the market for an SBLC (Standby Letter OF Credit) or BG (Bank Guarantees) then make sure you avoid brokers at all cost. Because many of these brokers are jokers and they are the reason why many clients fail in bank instrument transactions.
With a broker the communication is slow because every information / communication must pass through the broker. On top of that, many of them brokers are greedy, they add as much as 3% commission in the deals making the transaction unattractive to most clients. So why waste time with a broker when you can deal directly with bg sblc provider?
Our bank instruments, bg and sblc/sloc are issued from prime banks such as Barclays Bank London, Standard Chartered Bank, HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP).
Since we now know that a free bg sblc is not possible, let us try to know more about Standby Letters of Credit (SBLC)
What is a standby letter of credit (SBLC)
A standby letter of credit (SBLC/SLOC) is a guarantee of payment by a bank on behalf of their client. It is a loan of last resort in which the bank fulfills payment obligations by the end of the contract if their client cannot.
A standby letter of credit can also be abbreviated SBLC or SLOC. A standby letter of credit is different from a bank guarantee.
Advantages of a Standby Letter of Credit (SBLC / SLOC)
Also, small businesses can have difficulty competing against bigger and better-known rivals. An SBLC can add credibility to its bid for a project and can oftentimes help avoid an upfront payment to the seller.The SBLC / SLOC is often seen in contracts involving international trade, which tend to involve a large commitment of money and have added risks.
Uses of SBLC / SLOC
The Difference Between Letter of Credit (LC) and Standby Letter of Credit (SBLC).
Please note that Standby Letter of Credit (SBLC) is different from Letter of Credit (LC).A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the counter party risk of the buyer paying the seller for goods The major difference: The ‘Letter of Credit’ and the ‘Stand By Letter of Credit’ are two legal bank documents that are used by international traders. Both these letters are used to ensure the financial safety between the supplier and their buyers. SBLC is a type of LC that is used when there is a contingent upon the performance of the buyer and this letter is available with the seller to prove the buyer’s non-performance during the sale.
LC and SBLC are the two financial instruments that are meant to safeguard the financial interests of the international traders i.e. buyers and sellers. It simply means that both these terms are widely useful while making transactions between the two trading parties. These help in giving financial security to both the parties. Also, these contracts are produced in good faith and in both the cases the fund gets mobilized.
What is SBLC funding or SBLC Financing?
SBLC financing or SBLC funding is the process of using sblc to obtain loan or financing from a bank. SBLC/SLOC financing can also be described as the process of converting a standby letter of credit (sblc / sloc) into cash or legal tender.
What Is The SBLC Process? Terms and Procedure for SBLC
Below is the normal procedure for Standby Letter of Credit (SBLC).
Step 1: Application is made to BONGYAN FINANCE LIMITED for opening of a SBLC including but not limited to the following:
1. SBLC application form. (Provided by BONGYAN FINANCE LIMITED upon request) 2. Desired verbiage of SBLC. (If none provided,BONGYAN FINANCE LIMITED will provide its normal SBLC / letter of credit verbiage.3.SWIFT code and address of beneficiary bank.4. Know Your Customer (KYC) documents including but not limited to: Passport copy of applicant, proof of address documents such as electricity or water bill, articles of incorporation of applicant company and brief summary, executive summary and/or business plan of underlying transaction.
Step 2: BONGYAN FINANCE LIMITED reviews all documents presented and evaluates acceptability of documents. BONGYAN FINANCE LIMITED then either approves the application or denies and shall inform the applicant of such decision.
Step 3: BONGYAN FINANCE LIMITED prepares draft of the SBLC as it is comfortable to issue and forwards to client for approval. All drafts shall be in line with rules and regulations governing the issuance of SBLC.
Step 4: The client approves the draft and: 1. Signs a contract agreeing to the terms and conditions of issuance and issuance charges as negotiated.2. BONGYAN FINANCE LIMITED issues the invoice for the agreed upon charges.
Step 5: Client makes payment of charges as per agreed upon payment structure.
1. Client shall provide TT/Wire copy of payment made to BONGYAN FINANCE LIMITED account. 2. BONGYAN FINANCE LIMITED shall confirm to client credit of funds upon receipt of funds to BONGYAN FINANCE LIMITED account.
Step 6: BONGYAN FINANCE LIMITED uploads draft to SWIFT system and provides copy to applicant for final approval of message. Upon approval given by applicant BONGYAN FINANCE LIMITED then releases the SWIFT to beneficiary bank coordinates.
Step 7: Copies of released SWIFT are then forwarded to the client via email or hard copy as requested. In case the client is represented by an advisor, then it is forwarded to the advisor only.
Step 8: Any amendments to SBLC are subject to approval of BONGYAN FINANCE LIMITED .
Why Do Some SBLC Transactions?
Simple But Straightforward Answer: Most SBLC transactions fail because of GREED and unworkable procedures. Listed below are the top 7 reasons why many bg/sblc transactions fail.
1. Free SBLC Without Upfront Fees – Many people are under the false illusion that they can close a BG or SBLC transaction free of charge without spending any money upfront. They want the Funder or bank instrument provider to pay the upfront fees so that they can complete the financial transaction for FREE, taking no risk and investing none of their own money. These types of free deals do not exist in the real world, if they did there wouldn’t be any poor man in the world today. Banks have NEVER sent multi million dollar assets to customers for FREE and then hope the customer pays them later. This is the number one reason why many SBLC transactions fail.
2. Customers Procedure: Every week we receive sblc inquiries from people who say they want SBLC to be issued according to their own terms and conditions. Obviously this is not POSSIBLE; Banks do not work according to a borrower’s terms. If you need SBLC or any financial instrument for that matter then you have to follow the bank or sblc providers laid down rules and procedures. This is the second reason why many sblc deals fail.
3. Price Shoppers – People are lured by fake artificially low sblc prices offered by scammers. The simple truth is, when a scammer is not delivering anything real they can afford to offer you the deal of the century. So when it sounds too good to be true then be careful. Price Shopping is the third reason why sblc transactions fail.
4. Greedy Million Billion Gang: Offers that set forth tranches of $1b, $5b, $20b and more, are just pure nonsense. Every week we receive offers from people who claim they need 70 BILLION Dollar SBLC or more. Truth is that most people who troll the internet with multi billion dollar SBLC requests do not have any money in their bank account to close the deal. Greed and Ignorance will make you lose your sense of reasoning. Many people don’t want to hear these things because the truth hurts but we will keep saying the truth regardless.
5. Bank Endorsed Deed of Agreement (DOA): Banks do not endorse SBLC deed of agreement contracts or LOI. This action would place a financial liability on the bank and they cannot and will not incur that liability on behalf of their depositors. So if you received any offer or document from anyone claiming it has been endorsed by the bank kindly run for your life because it is FAKE.
6. BPU (Bank Payment Undertaken): Banks do not issue BPU to enable a customer to get a financial instrument without paying upfront fee. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well, contact your banker and ask questions. I am a seasoned banker that has worked with some of the world’s biggest banks such as HSBC, Barclays etc so I know.
7. ICBPO MYTH: ICBPO means Irrevocable Conditional Bank Pay Order. Banks do not issue irrevocable conditional bank purchase orders (ICBPO), or any purchase orders, period. Many joker brokers and uninformed clients think they can close a deal with ICBPO. ICBPO is banned and illegal. In fact, a bank is precluded from incurring any liability on behalf of a depositor. And, the words “irrevocable conditional” form an oxymoron. No western world bank will issue a MT543, as it is a liability on behalf of the bank. In fact, as of September 1, 2003, the MT543 is gone from the banking world. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well, contact your banker and ask questions.
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