What you need to know about Monetizing Bank Instruments

When you want a Bank Guarantee Funded, Monetized, Discounted or to Sell a Bank Guarantee, our Funder sends the below MT799 Payment Guarantee to the BG Issuing Bank. It is one of the most secure, safe and powerful payment guarantees you can get because the Funders Bank endorses and stands behind the MT799 Payment Guarantee with ´Full Banking Responsibility & Liability´ meaning if for any reason the funder fails to pay you, there bank commits to make the payment because they stand behind it with ´Full Banking Responsibility & Liability. A standard SWIFT MT103 (Single Customer Credit Transfer) is a general use message of a TT payment instruction which is an unconditional payment. I would like to confirm that there is no MT103/23 Conditional, but MT103 (usually with Field 23B – bank operation – mandatory code word CRED), Field 23E – Instruction Code – is where the remitting bank puts in instructions code instructing the beneficiary’s bank how to effect the payment. Most people, brokers included, have absolutely no clue what it takes to be successful in Monetizing Bank Instruments. Many brokers think that if they have an instrument, then someone who is involved in monetizing bank instruments will automatically give them several million in cash and it’s all over. In reality however, the truth is much different. People who purchased a Bank Guarantee, a Standby Letter of Credit, or other bank instrument are often shocked to learn that their newly purchased instrument was never designed to be monetized and is therefore worthless for their intended purposes. Bank Guarantees can be worded specifically for monetization, i.e. to secure credit lines. Not all Bank Guarantees are intended for monetization so it is important to understand what you paying for and what you are getting to ensure that it will work for your intended purpose. If you don’t have a bank instrument, we suggest acquiring your BG from us, this means that the monetizing process will be easier, smoother and faster since we provided the instrument through our prime banks. The truth of the matter is that having the money to buy an instrument doesn’t mean that your project will get funded or that your bank instrument can or will be monetized. Of the limited providers who work with Monetizing Bank Instruments, it is very possible that none of them will be interested in monetizing your Bank Guarantee. First things first. You should know who will be monetizing your instrument before you purchase it. You should also understand that not all BG’s or SBLC’s are the same. Pay attention to where the BG is coming from. Is it from Europe, Africa or Asia? The jurisdictions and legal ramifications are not the same and you should know and understand the differences. This will also affect the instrument’s cost and acceptability to third parties. Read the language and text of your SWIFT MT-760, Bank Guarantee or SBLC carefully. Pay attention to every word and have it reviewed by professionals and the beneficiary prior to paying for anything. Verify if the bank instrument is intended for monetization and find a supplier who will monetize it in advance. I already bought an instrument! Now what? This is where the confusion and frustration sets in. You have your BG or SBLC and your monetizer fell through. You now need another provider that specializes in monetizing bank instruments. Martin Burns Limited can help, however, Your Bank Guarantee is not enough. Just showing someone your BG or SBLC text will not be sufficient to establish a credit line. Of course the text is the first thing we will look at but its far from the only thing we will consider.