Monetization of Standby Letter of Credit
Standby Letter of Credit (SBLC) must be issued by top rated banks. The SBLC can generally be monetized up to 80% of its face value depending on the issuing bank’s credit rating and the location. The SBLC must be transferable, irrevocable and unconditional.
We will never alter our transaction procedure for any reason.
The monetization closing procedure as follows:
- Complete and Send the Application for SBLC Monetization (action by Client)
- Prepare and Send the Contract for SBLC Monetization (action by Westlake)
- Review, Sign and Send the SBLC Monetization Contract (action by Client)
- Send the Financial Guarantee (action by Client)
- Review, Sign and Send the SBLC Monetization Contract (action by Westlake)
- Transmit the SWIFT MT 199/799 (action by Client’s Bank)
- Transmit the SWIFT MT 199/799 (action by Westlake’s Bank)
- Transmit the SWIFT MT 760 (action by Client’s Bank)
- Transmit the SWIFT MT 103 (action by Westlake’s Bank)
- Hardcopy delivery (action by Client’s Bank)
No additional commissions on top of the LTV agreed in the Contract. The discount price is already inclusive of profit for Westlake Asset Group and its authorized broker.
People typically use this tactic to shop around for a bank Instrument with a provider institution with a banking letter confirming there is a cash funds or credit line ready to incentivize the provider to send a bank instrument on their behalf. We will never allow this to happen under our company name. We will never issue RWA or BCL or POF letters.
Our POF or RWA will only be issued via SWIFT MT 199/799. Such 199/799 POF/RWA/Pre-Advice issuance will only be issued after the successful transmission and verification of SWIFT MT 199/799 issued by the issuing bank.
Email messaging does not provide any guarantee that the bank will follow up their conditional promises. Bank-to-bank communication will only be conducted by bank-to-bank authenticated SWIFT message.
Before the Contract signing, we had shared our valuable experience, recommendations and time to every clients by providing free consultation and educational contents. Since every transaction is uncertain to be successful, due to hefty amount of fraud in this industry from the issuer/provider side, which is outside Westlake’s control, we do charge an upfront fee to guarantee our benefit from every transaction we engage. Such upfront fee will be refunded upon the successful transmission and verification of SWIFT MT 760.