| Process |
The collateral must be market-tradable with a determinable value. If a trading value cannot be located, then a bid to buy the collateral from a bona fide arm’s length outside buyer may be used.
The instrument may be existing, just acquired or fresh-cut, and is transferred via SWIFT through a major world bank to the lender's bank (unless other procedures are arranged).
The collateral will be held in single-purpose accounts or secure lockboxes with major banks (e.g., JPMorgan Chase, Wells Fargo, HSBC, Bank of China- Hong Kong/London, Bank BNP Paribas).
The verification required is the legitimacy of the collateral, confirmed through direct communication between our bankers and the issuing banks. Deals can close in as little as 20 business days, depending on the complexity of the instrument and the Borrower’s responsiveness.
We protect intermediaries by recognizing a fee agreement between the Intermediary and the Borrower. When directed by the Borrower, we pay commissions from the loan proceeds at closing.
Based solely on the validity of the collateral, we bypass the usual complexities of conventional borrowing. Rapid and easy access to large borrowings. Flexibility to use the funds as preferred. No monitoring nor any draw schedule requirements