Wednesday, July 12, 2017by Anselmo Blackman
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.
http://afbsx.businesscatalyst.com/blog/what-it-takes-to-be-successful-in-monetizing-bank-instruments
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.
http://afbsx.businesscatalyst.com/blog/what-it-takes-to-be-successful-in-monetizing-bank-instruments
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