Subcontracts India
Explore alternative funding options and financial solutions. If you are looking to obtain a Standby Letter of Credit (SBLC)  or Bank Guarantee (BG) either through purchase or lease, you have arrived at your final destination. We are experts at handling issuance of SBLCs/BGs and we have done it many times over. Airline Operators, Miners, Investment Bankers, Project Owners, Oil & Gas Traders, Commodity Traders, etc. have successfully obtained SBLCs/ BGs  through us. If you follow our procedure, it is likely that you might obtain an SBLC / BG provided you are financially capable to transact and possess the right business credentials. We do not entertain brokers or intermediaries.

​​INVESTOR OBLIGATION
The INVESTOR obligation is to make sure all instruments are fully cash backed and ensuring that the PURCHASERS are paying no UPFRONT for any reasons. The INVESTOR is also responsible for all bank charges for procurement which sets Purchaser or Lessee free from any UPFRONT PAYMENT.
The INVESTOR undertakes to provide a 100% FUNDED ISSUING BANK ACCOUNT for procurement / issuance of all instruments reserved the rights below:
A) The INVESTOR reserved the right to receive in its nominated Bank account anywhere in
the world MT799 or MT199 Proof of Fund (POF) to be issue by the PURCHASER OR LESSEE within Three (3) Banking Days upon which contract is signed.
VERBIAGE OF POF VIA SWIFT MT799 OR MT199
“We , XXXX Bank, Address at XXXXXXXX, United Kingdom, as instructed by our customer (AZ PURCHASER’S NAME LLC) confirm that customer’s Account Number: XXXXXXXXXX is active with us in good standing with the balance of $XXX,000,000.00 (XXX million United States Dollars) from non-Criminal origins and that this amount is available for transaction number: TRFI/LCREDIT2019, and will be released on customer's instruction for the benefit of your customer ( AZ INVESTOR’S NAME LLC/ ACCOUNT NO. XXXXXXX).
For and on behalf of: XXXXXX BANK.”
B) The INVESTOR reserved the right to receive to receive the entire instrument and
Brokerage fee on the same account received the POF prior to dissemination to Provider and all Brokers involved.
C) The INVESTOR reserved the right of the Paymaster on this CONTRACT.

​SBLC (Standby Letter Of Credit) Provider without upfront charges.

TRANSACTION PROCEDURES
1. Agreement – PROVIDER, PURCHASER and INVESTOR execute, sign and initiate this Financial Instrument Deed of Agreement, which thereby automatically becomes a binding agreement between the parties.
2. Proof of Funds (POF) - Within (3) three days of all Three Parties (PURCHASER, PROVIDER & INVESTOR) signing this agreement or as mutually agreed between the parties, the PURCHASER will cause its bank to issue Proof OF Funds (POF) via MT799 or MT199 Amount covering the instrument value according to the verbiage below:
VERBIAGE OF POF VIA SWIFT MT799 OR MT199
“We , XXXX Bank, Address at XXXXXXXX, United Kingdom, as instructed by our customer (AZ PURCHASER’S NAME LLC) confirm that customer’s Account Number: XXXXXXXXXX is active with us in good standing with the balance of $XXX,000,000.00 (XXX million United States Dollars) from non-Criminal origins and that this amount is available for transaction number: TRFI/LCREDIT2019, and will be released on customer's instruction for the benefit of your customer ( AZ INVESTOR’S NAME LLC/ ACCOUNT NO. XXXXXXX).
For and on behalf of: XXXXXX BANK.”
3. Delivery MT799 - After POF have been received at INVESTOR’S Bank, the PROVIDER will..


NON CIRCUMVENTION AND NON DISCLOSURE

All parties do herein agree that the non-circumvention and non-disclosure rules (NCND) of all issues from the ICC 458 apply to this transaction for a period of five (5) years from date of execution of this agreement by the undersigned, his or her assigns, agents and/or heirs.
This NCND also applies to any and all other transactions direct or indirect initiated by these intermediaries.
The undersigned agrees that this fee protection is assignable and transferable to the beneficiaries, designs, heirs & assigns upon written notice of all parties and shall not be amended without the express written consent of the parties.  If no contract is consummated, this fee protection agreement is null and void in its entirety.
All disclosed banking information shall be strictly confidential. No communication between banking officers.  Other than transmission by SWIFT wire transfer and any other transmission specifically authorized by the beneficiaries, is permitted.  All communications shall clearly reference the transaction code, the Seller's code and the Buyer's code referred to herein.
Should a contract be signed between the Provider and the Lessee, a bank endorsed corporate pay order will be issued to the paymaster of each group, followed by a SWIFT wire transfer to the paymaster's account, when payment for the bank instrument is completed.
An executed facsimile or email copy shall be deemed to be as an original


FOR MORE DETAILS: EMAIL Us at finance@subcontractsindia.com 


THE DEED OF AGREEMENT (DOA) IN WORD FORMAT WOULD BE SENT ONLY AFTER RECEIPT AND APPROVAL OF THE FILLED AND SIGNED CIS 

sblc by subcontracts india
sblc by subcontracts india
sblc by subcontracts india

LEASED SBLC (Standby Letter Of Credit)

sblc by subcontracts india

​​LEASING AN SBLC

**Seven steps to close Standby Letter Of Credit (SBLC)/ Bank Guarantee (BG) delivery process (Lease):


  1. Purchaser/Lessee sends POF MT799 or MT199 to INVESTOR’S Bank Account
  2. Issuing Bank Sends MT799 Pre-advise to Receiver's Bank Account
  3. Receiving Bank Verifies and Authenticates the MT799
  4. Receiving Bank replies to MT799 by sending to Issuing Bank MT799 BPU (Bank Payment Undertaking)
  5. Issuing Bank verifies and then sends MT760
  6. Receiving Bank verifies and authenticates the MT760
  7. Purchaser/ Lessee pays Instrument fee to INVESTOR’S Account within five (5) Days
 
NOTE REGARDING POF: Although this request for POF is not a part of the provider’s DOA, before we do a submission, however, we need to receive from the buyer/ Lessee a recent POF (be it cash funds and or credit line with available balance) so we can at least verify on a preliminary basis the client’s financial capability to do at least the first tranche. If needed this document can be sanitized to protect the client’s info but it needs to show the bank/location that issued it and the cash funds or credit line available balance. We have had situations before in which principals complete and sign the DOA and the buyer/ Lessee (window shopper for provider's info) does not send the Swift POF as per DOA procedure.

One might ask what the benefits are for leasing a bank instrument. Well, it is very good for trade finance.It's a good to give the Seller comfort should the Buyer not pay for goods received
It's also a good way for a Purchaser to buy goods to sell on to a Buyer waiting in the wings and use proceeds from sale to pay for the goods purchased from the Seller. In trade finance the Supplier will want assurances by way of a bank instrument to demonstrate that should an invoice not be settled, they can call on the instrument and cash it in to collect their payment. 

A leased SBLC is in effect a bank guarantee, which is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer, looking to secure the SBLC. Following this it will lease a guarantee to that customer for a set amount of money and over a set period of time 

Although a leased Standby Letter Of Credit (SBLC)/ Bank Guarantee (BG) is not considered an "asset" (leased SBLC/BG is not trading securities, trading debt instruments, or trading investment funds. There is no public market for the trading of SBLCs/BGs. All SBLC/BG transactions are private transactions), it can still be monetized, discounted or funded (whereby the SBLC/BG is turned into usable cash) by a resourceful Monetizer. Remember, SBLC is after all a written obligation of the issuing bank to pay a sum on to a beneficiary on behalf of their customer in the event that the customer himself does not pay the beneficiary. The Instrument/ Security remains valid during the term before the Expiry Date. Most SBLCs are issued for a 1 year and 1 day Term. 

​To determine if a borrower is worthy of a leased Standby Letter Of Credit (SBLC)/ bank Guarantee (BG), many banks will undertake a credit analysis. Credit analyses focus on the ability of the organization to meet its debt obligations, focusing on default risk. Lenders will generally work through the five C's to determine credit risk: the applicant's credit history, capacity to repay, its' capital, the loan's conditions, and associated collateral. This form of due diligence can revolve around liquidity and solvency ratios. Liquidity measures the ease with which an individual or company can meet its financial obligations with the current assets available to them, while solvency measures its ability to repay long-term debts. Specific liquidity ratios a credit analyst may use to determine short-term vitality are current ratio, quick ratio or acid test, and cash ratio. Solvency ratios might entail the interest coverage ratio.
In contrast to a purchased or owned SBLC/BG where the buyer becomes the official owner of the instrument and in turn would be able to lease the SBLC/BG out to a Third Party, a "leased SBLC/BG" cannot be "leased out" any further. 

​​If you are looking for a Provider to buy or lease a Standby Letter Of Credit (SBLC) or a Bank Guarantee (BG), you have arrived at your final destination. We are experts at handling issuance of 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 SBLCs/BGs through us. We firmly believe that all our clients must receive correct and full information about 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 SBLC FACILITATOR for obtaining SBLC through us.
 

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