Standby Letter of Credit Monetization (SBLC)
Instrument & Service Description
Complete Leased Standby Letter of Credit Monetization (SBLC) Non Recourse
We offer 3 Standby Letter of Credit Monetization (SBLC) settlement methods:
1. Bank SWIFT - We use the Bank SWIFT Network to have the Standby Letter of Credit (SBLC) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.
2. Euroclear - We use the Euroclear Network because the Euroclear settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incur any SWIFTING FEES or Delays. Euroclear is a well established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully.
3. DTCC - On some deals we now also accept delivery of the leased Standby Letter of Credit (SBLC) by DTC also known as DTCC (The Depository Trust & Clearing Corporation). The advantage of DTC is that clients using this process to deliver a Leased Standby Letter of Credit (SBLC) DO NOT incur bank SWIFTING FEES. DTC is a well established international business that was founded in 1999 and in 2015 was recorded as settling 1.5 Quadrillion Worldwide making it the highest securities' settlement processor in the world.
Graco Commercial Capital Standby Letter of Credit Monetization services are ideal for clients looking to Discount, Monetize, or create an immediate Non Recourse loan against a Leased Standby Letter of Credit (SBLC) that they control. The Standby Letter of Credit Monetization process for Leased Standby Letter of Credit (SBLC) issues Non Recourse funds to the Client shortly after the Standby Letter of Credit (SBLC) is delivered to the Monetizer.
Important: Our contracts also include the monetizer returning the Leased Standby Letter of Credit (SBLC) to the issuing bank 15 days prior to the Standby Letter of Credit (SBLC) expiration. This is a critical requirement of most Leased Standby Letter of Credit (SBLC) Issuers.
Standby Letter of Credit Monetization LTV:
$10M to $49M Standby Letter of Credit (SBLC - Owned) - 60% -85%
$50M + Standby Letter of Credit (SBLC - Owned) - 65% - 90%
Estimated Completion Time
7-14 days after all documents are signed and verified or 3-4 days after instrument delivery on the SWIFT or Euroclear networks.
Closing Process - SWIFT
- After execution of the Standby Letter of Credit Monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
- The monetizers bank on receipt of the SWIFT MT799 from the clients bank will reply with a SWIFT MT799.
- On receipt of the monetizers bank SWIFT MT799 the clients bank will deliver the Standby Letter of Credit (SBLC) by SWIFT MT760 to the monetizers bank.
- Upon receipt, confirmation and delivery of the SWIFT MT760 the Standby Letter of Credit monetizer will within maximum four (4) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the client.
- The Standby Letter of Credit Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
