Services

What we do

SBLC- Standby Letter of credit

The Standby Letter of Credit and Bank Guarantee is provided by our bank (as the provider) to the beneficiary’s account/bank and it is transmitted interbank only through SWIFT (MT760). During the lifespan of the instrument, the beneficiary may utilize it for the two main and popular purpose of credit enhancement (raise loan, enhance credit line) or as a payment guarantee (Trade positions of a buy and sell contract for good and/or services to be rendered). At the end of the tenure of the agreement that guided the issuance, the beneficiary is expected to return the bank guarantee to our issuing bank without encumbrances or liens and the beneficiary also has the obligation to indemnify us against any loss incurred against such instrument. In addition, the beneficiary also has the option of extending the contract because our collateral transfer agreement or Deed of agreement always comes with an option of rolls and extension of up to 5 years and in some cases 10 years depending on how strong the beneficiary is placed and our due diligence.

 

BG- Bank Guarantee

Most trusted Bank Guarantee Services Obtain your bank guarantee for your next big transaction from a reputable trade finance company in the UK for reasonable service costs. Our experts will help you get your bank guarantee fast causing you minimum hassle.

Our Bank Guarantees and Standby Letter of Credit are available from the range of $/€5 million to United States $/€ 20 Billion. Any amount over $/€500 Million is achievable in tranches till the maximum limit is expended. All depends on the intake capacity of the beneficiary/applicant.

Our Bank Guarantee and Standby Letter of Credit is issued from AAA rated banks only and it is widely accepted in all banks in the world with some exception that we may not be willing to send out a SWIFT to some banks/financial institutions based on our previous experience and relationship with such bank/institutions. There is always an option for the applicant/beneficiary to submit their verbiage for review depending on the approval of our bank otherwise, our bank’s standard verbiage will be used in SWIFT transmission of such bank instrument which will be made available in the contract which is usually in the ICC758 (UPC 600) format which is widely accepted for activation of credit line.

Our contract fee is charged at a rate of 5% to 8% and there are variables that determines this which all falls on our due diligence on the beneficiary/receiver and obviously, the contract size also has an effect on the pricing.

Monetization of bank instrument

All monetization ends up as a recourse loan. With our cash backed Bank Guarantee or Standby Letter of Credit, you are expected to get an 100% LTV because it is cash backed and not asset backed (which has so many variable that has to be considered before determining the LTV by the beneficiary/beneficiary bank of the receiver of such asset backed Bank Instrument), but no bank will give you a 100% LTV except you have an arrangement with them before approaching us for the Standby Letter of Credit or Bank Guarantee. But you can be rest assured to get a maximum value ranging from an 80% to 95% LTV on any Standby Letter of Credit (SBLC) or Bank Guarantee (BG) issued by us. This basically equates to using the Standby Letter of Credit or Bank Guarantee as a collateral for a loan with your financial institution in simple terms.

In conflict to the point raised above, if you are using an intermediary for your monetization, some has structures in place for a fee or interest who can monetize your Standby Letter of Credit or Bank Guarantee for a non-recourse loan that they intend to personally guarantee. This is not a miracle, but with our experience in the industry, some of the power play monetizer have an exit in place that need a paper from a third party for them to enter into a trade that probably makes up to 400% on the paper. This gives them the play-ground to cover the interest on the credit line/recourse loan from the bank, pay you the LTV on the Standby Letter of Credit or Bank Guarantee and still make great profit. Unfortunately, it is not easy to come by such power players.

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Wentworth Wills Ltd is a smart financing company registered under companies house in United Kingdom (No 11645201) Authorized and regulated by the Financial Conduct Authority.

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Email: info@wentworthwillsltd.com

Phone: +44 7441 393492

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