SBLC MONETIZATION.

Monetization is the process of converting or establishing something into legal tender. While it usually refers to the coining of currency or the printing of banknotes by central banks, it may also take the form of a promissory currency.

The term “monetization” may also be used informally to refer to exchanging possessions for cash or cash equivalents, including selling a security interest, charging fees for something that used to be free, or attempting to make money on goods or services that were previously unprofitable or had been considered to have the potential to earn profits. And data monetization refers to a spectrum of ways information assets can be converted into economic value.

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SBLC Monetizing Simplified

Have you ever questioned why SBLC are being monetized? The answer may appear somewhat modest. A monetizer makes a lot more money than what he pays the instrument owner and he does this by using the instrument to activate his own leveraged Credit Lines made available to him by his bank. Which means, a valid, cash backed instrument has the capacity to induce availability of trading capital to a securities trader much in access of its own Face Value.

This empowers the trader to close huge transactions leadings to humongous profit generation, a part of which is then passed on to the original instrument owner by way of the LTV.

This also means, monetizer are essentially securities traders who uses the instrument owner’s capital to make profit. Logical corollary to this is the fact that no monetizer, by this logic, would provide a BPU via SWIFT to the instrument owner’s bank because the monetizer is not purchasing the instrument.

Hence, all who seek to monetize their financial instruments such as Medium Term Notes (MTN), Standby Letters of Credit (SBLC), or Bank Guarantees (BG) must stop asking for BPU (Bank Payment Undertaking) from any monetizer. This means there are risks involved and hence expert legal advice and thorough due diligence of the monetizer/ Securities Trader is a pre-requisite.

Monetizing a bank instrument (BG/SBLC) thus means raising finance against it. In order to receive either cash funds or raise a credit line against an owned cash backed financial instrument. It is important that the bank instrument is worded specifically (verbiage) for the purpose of receiving cash funds for either viable projects, Platform Trading or securing a credit line.

Receiving cash funds or raising a credit line against a bank instrument issued for purposes other than these, may be difficult to monetize.

Monetizing bank instruments is the process of liquidating such instruments by converting them into legal tender. We can monetize or lend on credible bank instruments issued by rated banks to be used for project funding as well as move them into various trading platforms quickly and easily while creatively incorporating them into financing certain development projects.

This process allows you to: