TRADE FINANCE : PROVIDING SBLC / BG FOR OIL & GAS TRADE

QUICK AND EASY LEASED TRADE FINANCE INSTRUMENTS

Leasing LC/SBLC/BG : If you are looking for genuine/reliable Provider to lease a Letter of Credit (LC), Standby Letter Of Credit (SBLC) or a Bank Guarantee (BG), you have arrived at your final destination. We are experts at handling issuance of LC/SBLC/BG and we have done it many times over. Corporations, Airline Operators, Investment Bankers, Energy Companies, Project Owners, Miners, Oil & Gas Traders, Commodity Traders, etc. have successfully obtained LC/SBLCs/BGs through us. We firmly believe that all our clients must receive correct and full information about LC/SBLC or BG prior applying for these instruments. If you follow our procedure, it is likely that you might obtain an SBLC provided you are financially capable to transact and possess the right business credentials. We generally do not accept applications from brokers or intermediaries. The applicants first need to engage us as their sole and exclusive FACILITATOR for obtaining Trade Finance Instruments through us. Before proceeding, we strongly recommend one reads through the information below:

WHAT IS AN SBLC ?
A standby letter of credit (SBLC) is a guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SBLC performs brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then sends notification to the bank of the party requesting the letter of credit (typically a seller or creditor).

A standby letter of credit shows a company’s credit quality and ability to repay loans. Although a SBLC is not intended for use, it helps fulfill business obligations in case the business stops operations, cannot pay its vendors or becomes insolvent.

Small businesses often face difficulty when securing financing. For this reason, standby letters of credit may be especially beneficial for encouraging investors to lend money to a company. In case of default, investors are assured they will be paid principal and interest from the bank through which the SBLC is secured.

Standby Letters of Credit are issued for use in a wide variety of commercial and financial operations. Standby letters of credit are very much alike documentary letters of credit, their main difference is that unlike DLC’s, they only become operative in case the applicant defaults, then the beneficiary in whose favor the SBLC was issued, can draw on the SBLC and demand payment.

Historically, Standby letters of credit were developed because the US regulator legally limited US bank’s authority to issue guarantees.

SBLC’s are very similar to demand guarantees, which also require that the presentation of stipulated documents be compliant with the terms and conditions of the guarantee. SBLC’s and guarantees are different in terms of protection, they both serve the primary purpose of making sure that sellers get paid, but while a standby letter of credit protects the seller, a bank guarantee protects both sides, since it also protects the buyer in case the supplier never ships the goods or ships them in a damaged condition.

When requesting a SBLC, a business owner proves to the bank he is capable of repaying the loan. Collateral may be required to protect the bank in case of default. The bank typically provides a letter to the business owner within one week of receiving documentation. The business owner must pay a SBLC fee for each year that the letter is valid. The fee is typically 1-10% of the SBLC value. If the business owner meets the criteria outlined in the contract before the due date, the business owner can cancel the SBLC without further charges.

Standby Letters of Credit (SBLC) are a very flexible tool, making them a suitable product for securing a wide range of payment scenarios. A financial SBLC, the most common type, is typically used in international trade or other high-value purchase contracts where litigation or other non-payment actions may not be feasible. A financial SBLC guarantees payment to the beneficiary if criteria outlined in the contract are left unfulfilled. For example, an exporter sells goods to an overseas buyer who guarantees payment in 30 days. When the payment does not appear by the deadline, the exporter presents the SBLC to the importer’s bank and receives the payment.

A performance SBLC ensures the time, cost, amount, quality of work and other criteria are fulfilled in a manner acceptable to the client. The bank pays the beneficiary if any of the written obligations are unmet. For example, a contractor guarantees a construction project will be finished in 90 days. If work remains incomplete after the 90-day period, the client can present the SBLC to the contractor’s bank and receive the payment due.

HOW DOES SBLC WORK?
A breakdown of SBLC types is provided below:

1. A performance standby – backs a commitment to perform other than to pay money/funds and includes an obligation to pay for loses occurring from a default of the buyer in the process of completing an underlying transaction.
2. An advance-payment standby – supports an obligation to account for an advance payment made by the supplier to the buyer.
3. A bid-bond or tender-bond standby – backs an obligation of the buyer to execute a contract if the buyer is awarded a bid.
4. A counter standby – backs the issuance of another, separate standby letter of credit or other undertaking by the supplier of the counter standby.
5. A financial standby – supports an obligation to pay funds, including any instrument evidencing an obligation to repay borrowed money.
6. An insurance standby – supports an insurance obligation of the applicant.
7. A commercial standby – backs the commitment of a buyer to pay for goods or services in the event of non-payment by other methods.
8. A direct-pay standby – intended to be the primary method of payment. It may or may not be linked to a default in performance or payment.

WE TAKE CARE OF YOUR TRADE FINANCING REQUIREMENTS

Oil & gas traders can approach us with their requirements of trade financing and our expert team will gladly extend this service. Our procedure is simple yet transparent and our cost is extremely competitive. Traders can depend on our expert team to provide the most professional financial services.

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prices and terms

TRADE FINANCING: TERMS AND PRICES

STANDARD COMMERCE BANK, DOMINICA, BIC: STDMDMDM

INSTRUMENTS

MT700 - 90 / 180 / 365 - days validity LC at Sight / or / with usance terms
- Shipment mode: All modes of shipment
- Size: Single LC for up to 900M
MT760 - 90 / 180 / 365 - day SBLC / BG
- Size: Single instrument up to 900M
MT799 or MT 998/999 - RWA – With / without amount stated
- Size: Single instrument up to 900M
MT799 or MT 998/999 - POF / Blocked Funds/BCL

GENERAL GUIDELINES

Minimum issuance fee: USD 12,500.00
Can do specific custom verbiage for LC and SBLC / BG

PRICES

90 days LC at sight: 2.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
180 days LC at sight: 3.25% (plus USD 750 processing fees and USD 900 unutilized commission fees)
365 days LC at sight: 3.75% (plus USD 750 processing fees and USD 900 unutilized commission fees)
90 days Usance LC: 2.75% (plus USD 750 processing fees and USD 900 unutilized commission fees)
180 days Usance LC: 3.25% (plus USD 750 processing fees and USD 900 unutilized commission fees)
365 days Usance LC: 4% (plus USD 750 processing fees and USD 900 unutilized commission fees)

§ 90 day SBLC / BG: 2.75% (plus USD 750 processing fees)

§ 180 day SBLC / BG: 3.25% (plus USD 750 processing fees)

§ 365 - day SBLC / BG: 4% (plus USD 750 processing fees)

§ RWA with amount stated: 1.25%

§ RWA without amount stated: USD 12.5K

POF/ Blocked Funds/BCL: FROM MINIMUM OF USD 10K TO 0.15% FOR UP TO 5M AND THEN 0.1% FOR UP TO 50M AND 0.05% FOR UP TO 900M

BANK WINTER, AUSTRIA, BIC: WISMATWW

INSTRUMENTS

MT700 - 90 / 180 / 365 - days validity LC at Sight / or / with usance terms
- Shipment mode: All modes of shipment
- Size: Single LC for up to 5M
MT760 - 365 days SBLC / BG
- Size: Single SBLC / BG for up to 5M
MT799 or MT 998/999 - RWA – With / without amount stated

GENERAL GUIDELINES

Minimum issuance fee: USD 12,500.00
Cannot do specific custom changes for SBLC / BG verbiage
Can do minor edits in LC verbiage
Indemnity agreement of SUBCON should be signed by the company appearing as "buyer" in the instrument

PRICES

90 days LC at sight: 4.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
180 days LC at sight: 6.5% (0.7% FOR EACH 30 DAYS) (plus USD 750 processing fees and USD 900 unutilized commission fees)
365 days LC at sight: 9.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
90 days Usance LC: 4.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
180 days Usance LC: 7.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
365 days Usance LC: 9.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)

§ 365 - day SBLC / BG: 7% (plus USD 750 processing fees)

§ RWA with amount stated: 1.75%

§ RWA without amount stated: USD 16K

US BANKS

NEW YORK COMMUNITY BANK, BIC: ABNYUS33

VALLEY NATIONAL BANK, BIC: MBNYUS33XXX

INSTRUMENTS

· MT700 - 90 / 180 - day validity LC at Sight

GENERAL GUIDELINES

· Minimum issuance fee: USD 12,500.00

· Subject to line availability;

· Consumer goods only;

· Buyer must be a US company (for domestic US clients);

· Port of discharge must be in the US;

· Limit is under $1M.

PRICES

· 90 days LC at sight: 3.75% (plus USD 750 processing fees and USD 900 unutilized commission fees)

· 180 days LC at sight: 5.75% (plus USD 750 processing fees and USD 900 unutilized commission fees)

IDB, NEW YORK, BIC: IDBYUS33

INSTRUMENTS

MT700 - 90 / 180 - day validity LC at Sight

GENERAL GUIDELINES

Minimum issuance fee: USD 12,500.00
Subject to line availability
Shipment mode: Ocean shipment only
No US banks as advising banks (preferable)
No oil, gold, precious stones
No risky jurisdiction

PRICES

90 days LC at sight: 3.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
180 days LC at sight: 4.5% (0.5% FOR EACH 30 DAYS) (plus USD 750 processing fees and USD 900 unutilized commission fees)
365 days LC at sight: 6.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)

ASIA PACIFIC INVESTMENT BANK, MALAYSIA, BIC: ASPMMYKL

INSTRUMENTS

o MT700 - 90 / 180 / 365 - day validity LC at Sight / or / with usance terms

§ Shipment mode: All modes of shipment

§ Size: Single LC for up to 100M

o MT760 - 90 / 180 / 365 - day SBLC / BG

§ Size: Single instrument up to 100M

o MT799 or MT 998/999 - RWA – With / without amount stated

§ Size: Single instrument up to 100M

o MT799 or MT 998/999 - POF / Blocked Funds

GENERAL GUIDELINES

§ Minimum issuance fee: USD 13,500.00

§ Can do specific custom verbiage for LC and SBLC / BG

PRICES

90 days LC at sight: 4.5 % (plus USD 750 processing fees and USD 900 unutilized commission fees)
180 days LC at sight: 5.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)
365 days LC at sight: 7% (plus USD 750 processing fees and USD 900 unutilized commission fees)

§ 90 days Usance LC: 4.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)

§ 180 days Usance LC: 5.5% (plus USD 750 processing fees and USD 900 unutilized commission fees)

§ 365 days Usance LC: 7% (plus USD 750 processing fees and USD 900 unutilized commission fees)

§ 90 day SBLC / BG: 4.5% (plus USD 750 processing fees)

§ 180 day SBLC / BG: 4.5% (plus USD 750 processing fees)

§ 365 - day SBLC / BG: 4.5% (plus USD 750 processing fees)

§ RWA with amount stated: 1.75%

§ RWA without amount stated: USD 16K

§ POF/ Blocked Funds/BCL: 0.15%

HK BANKS

INSTRUMENTS

STANDARD CHARTERED BANK HK
HSBC HK
OCBC HK
- Are offered as follows:
  - MT700 - 90 - day validity LC at Sight
  - Shipment mode: Ocean shipment only
  - Size: Single LC for up to 1M
DBS HK
DAH SING BANK HK
- Are offered as follows:
  - MT700 - 90 - day validity LC at Sight
    - Shipment mode: Ocean shipment only
    - Size: Single LC for up to 1.5M - we can push for 2M if line is available
  - MT700 - 90 - day validity LC + 90 days usance terms:
    - Shipment mode: Ocean shipment only
    - Size: Single LC for up to 1.5M - we can push for 2M if line is available

GENERAL GUIDELINES

Subject to line availability
No US banks as advising banks
No oil, gold, precious stones
No risky jurisdiction
No more than 2-3 countries involved (export country, import country, buyer country - no more)
Minimum issuance fee: USD 5,500.00

PRICES

90 days LC at sight: 6%
90 days Usance LC: 11% (for 90 days usance terms + 90 days validity)

PROCESS

Our process is as follows:

(1) Client remits pro-forma invoice pertaining to the forthcoming transaction and/ or completed application to Subcontracts India

(2) Subcontracts India (“SUBCON”) sends a draft, agreement, and opening fees invoice for the client's review

(3) Client signs the draft, agreement, and wires opening fees as per the issued invoice

(4) SUBCON releases instrument to Bank for issuance

(5) Assuming no questions, Bank issues SWIFT within 24-72 hours

(6) SUBCON emails a copy of SWIFT to the client thus completing the transaction

REQUIRED DOCUMENTS FOR ISSUANCE

The required documents for issuance are as follows

(For Bank Winter and to some extent for IDB there are additional DD requirements.

Additional DD requirements will be covered on a deal-by-deal basis):

· FROM THE CLIENT:

o Certificate of incorporation

o List of shareholders / directors

o Passport copy of a listed director

o Signed draft

o Document confirming the underlying transaction: contract, pro-forma invoice

· FROM THE PAYING PARTY:

o Certificate of incorporation

o List of shareholders / directors

o Passport copy of a listed director

o Signed indemnity agreement

TRADE FINANCE : PROVIDING SBLC / BG FOR OIL & GAS TRADE

QUICK AND EASY LEASED TRADE FINANCE INSTRUMENTS

WE TAKE CARE OF YOUR TRADE FINANCING REQUIREMENTS

prices and terms

TRADE FINANCING: TERMS AND PRICES

STANDARD COMMERCE BANK, DOMINICA, BIC: STDMDMDM

BANK WINTER, AUSTRIA, BIC: WISMATWW

US BANKS

ASIA PACIFIC INVESTMENT BANK, MALAYSIA, BIC: ASPMMYKL

HK BANKS

PROCESS

REQUIRED DOCUMENTS FOR ISSUANCE

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