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Wing Kut Industrial Building,

608 Castle Peak Road, Cheung Hong Kong

Bank Instruments Meaning, Uses, Types & Genuine Bank Instrument Provider

Who is a Genuine Bank Instrument Provider?

Genuine Bank Instrument Provider is a financial services provider like Bongyan finance limited that provides genuine banks instruments from some of the worlds biggest banks like UBS Switzerland, Barclays bank London, UNICREDIT, Standard Chartered bank Dubai, Bank of America, Wells Fargo Bank or Citibank.

What is a Bank Instrument?

A Bank Instrument is an asset based or cash based financial document like a bank guarantee, standby letter of credit, bonds, shares, bill of exchange, futures or options contract, cheque, bank draft, or more. Bank financial instruments carry a monetary value and are legally enforceable. One can also create, modify and trade such instruments, which represent a binding agreement between two or more parties.

Some bank instruments may also be divided according to their asset class, which depends on whether they are debt-based or equity-based.Bank Financial instruments can assist individuals, businesses, organizations and governments to overcome conventional banking challenges and fund their projects, businesses, trade financing, import and export transactions or other strategic objectives.

Types and Examples of Bank Instruments

  1. Documentary Letter of Credit (DLC, SLC, LC)
  2. Standby Letter of Credit (SBLC)
  3. Deferred Letter of Credit (DLC)
  4. Certificate of time deposits (CD)
  5. Stand by letter of credit (SBLC)
  6. Medium term notes (MTN’s)
  7. Long Term Notes (LTN)
  8. Promissory Notes (PN)
  9. Bank Guarantee (BG)
  10. Treasury Bills (T – B)
  11. Bank Drafts (BD)
  12. Bonds

Generally speaking, bank financial instruments are denominated debt instruments (papers) issued by large banks and institutions to named parties and beneficiaries for specified terms and purposes. These instruments may be used as funding collateral or to enhance credit, “trade” or to enter into private placement programs.

There are very few Genuine Bank Instrument Providers in the world and Bongyan Finance Limited is among the top 5 bank instrument providers in the world. Contact us if you want to know the list of all the genuine bank instrument providers in the world and we will be glad to share that confidential and classified information with you.

To understand who these Genuine Bank Instrument Providers are and how they function, one must understand what is called Collateral Transfers in the financial industry.

Collateral Transfer is basically the process of transferring assets from one party (the Provider) to another party (the Beneficiary) often in the form of a Bank financial Instrument (BG or SBLC). This occurs whereby the Provider agrees (through his Issuing Bank) to issue a “Demand Guarantee” to the Beneficiary in return for a “rental” or “return” generally known as the “Contract Fee”. The parties agree to enter into a Collateral Transfer Agreement (CTA) which governs the issuance of the instrument.


1. Instrument: Fully Cash Backed Bank Guarantee {BG} or Standby Letter of Credit {SBLC}
2. Total Face Value: USD 1 Million (Min) to USD 5B (Max)
3. Issuing Bank: HSBC Hong Kong, Barclays Bank London or any prime Bank(ETC)
4. Age: One Year and One Day (with rolls and extensions where applicable)
5. Leasing Price: 4% (+ 2% brokers commission where applicable) 2% broker commission applies to clients that were introduced by brokers
6. Delivery: SWIFT MT-760
7. Payment: MT103 Wire Transfer
8. Hard Copy: Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument.

Bongyan finance limited is a genuine bank instrument provider, sblc provider, standby letter of credit provider, lease bank instrument providers, international bank guarantee providers, real bank guarantee provider, lease bank guarantee provider, providers leased bank guarantees, Real BG/SBLC Providers worldwide, top letters of credit providers, genuine letter of credit providers, lease standby letter of credit (SBLC).

Uses of Bank Instruments for potential holders or beneficiary

  1. Bank instruments vary in scope and purpose with each bank instrument serving a specific purpose. Bank instruments are very important in international trades, trade finance, important and export transactions and they are widely used by businesses, contractors, importers as well as exporters.
  2. Some financial instruments will act as Collateral or credit enhancement to shore up financial statements and profile.
  3. Some bank instruments like letters of credit help to facilitate international trade between companies that don’t know each other and have different laws and regulations.
  4. Proof of funds, bank guarantees, letters of credit; to facilitate, secure or execute projects, trade and business transactions.
  5. A Bank Instrument like a Bank Guarantee (BG) allows the customer, or debtor, to acquire goods, purchase equipment or draw down a loan. A Bank Guarantee is a promise from a bank or other lending institution that if a particular borrower defaults on a loan, the bank will cover the loss. Note that a bank guarantee is not the same as a letter of credit.


Bank instrument delivery and authentication via Euroclear or Swift Network   

Bank instrument delivery and authentications are critical and usually involve SWIFT MT 799, SWIFT MT 760, SWIFT MT110, etc., with Cussip, ISIN numbers.

highly recommend you to read “ Difference Between Swift MT799 And Swift MT760” – “about the different types of bank swift messages that is used in transmitting bank guarantees and standby letters of credit, between banks and other financial institutions” before starting to study this standby letter of credit sample.


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