We monetize financial instruments – using a wide range of financial instruments and other types of collateral to secure non-recourse loans, anywhere in the world, with borrowed proceeds used for most any lawful purpose.
Monthly interest payments are set-aside from loan proceeds, creating an interest reserve. At the end of the term, the loan may be repaid, or we liquidate the instrument that was used as collateral. That’s all there is to it.
We operate world-wide. Our minimum transaction is US $5 million; there is no maximum. Any currency is acceptable.
These transactions are relatively simple; require no business plan, no on-site due diligence, no third party consultants, no appraisals, no credit requirements, no large net worth, no liquidity requirements, no personal signature, nor any other complexities of conventional borrowing.
We can manage instruments in US Dollars or Euros; we lend in US Dollars or Euros; we use major banks in the US and Europe, even Hong Kong.
Below are the details involved, so that you and/or your clients can secure large borrowings in a rapid and simplified manner, with the ability to apply the borrowed funds where you/they prefer, with no monitoring, no draw schedule, with the only verification is that the collateral is real, which verification is confirmed by our bankers in communication with the issuing bankers.
Depending on the complexities of the instrument, and timely responses from the client, we may close in as little as 20 business days.
Have a look at the details below. Let us know if you have questions.
MONETIZE FINANCIAL INSTRUMENTS AND OTHER COLLATERAL
Secure a non-recourse, one-year renewable loan, using virtually any financial instrument – one that is routinely traded in the marketplace and thereby has a value that can be determined.
Types of Financial Instruments:
Such instruments include, but are not limited to, Letter of Credit, Standby Letter of Credit, Bank Guarantee, Notes (including short term – medium term – long term), Certificate of Deposit, Treasury Bills, Stocks, Corporate and Government Bonds, Bearer Instruments, Bank Drafts, Cashier’s Checks, and more. Even Trusts, Bank Accounts, Loan Agreements, Defaulted Mortgages/Loans will be considered.
Other historical valuables such as a collector’s banknotes, and financial certificates may be acceptable.
We also utilize select commodities including gold, silver, diamonds, nickel, nickel-wire, and copper. (Publicly traded commodities only)
More difficult but still possible are cryptocurrencies such as Bitcoins.
The collateral may already exist, may have been acquired on the secondary market, or maybe fresh-cut – we are able to monetize them all.
Financial instruments issued by secondary or tertiary banks MUST be transferred by SWIFT via a major world bank to our bank at the time that we are prepared to close the loan.
Range of Values:
Major bank-issued financial paper, worldwide, is in the 75% to 90% range. Depending on the issuer and the type of collateral, the typical loan to value is 65% for most other types of conventional collateral. For less popular instruments and commodities, our loans range from 35% to 65% (lesser of) face amount or current trading value.
The Loan:
Our minimum loan size is $5 million. There is no upper limit (we are able to lend billions of US dollars/Euros). We make the loan in either US Dollars or Euros. We can close the loan in the USA, Europe, or Hong Kong – all Borrower’s preference (often based on where the collateral is located).
The loans are whole loans – generally not in tranches – and may not require a draw schedule. The borrowed funds may be used for any lawful purpose, and the Borrower must attest to same.
Loan Maturity:
At the end of the loan term, the loan may be repaid or not – Borrower’s preference. If the Borrower elects not to repay the loan, we liquidate the collateral and repay the borrowed funds. This is why we only deal with collateral that is owned and can be evaluated in the marketplace.
We Hold the Collateral:
The collateral is to be transferred into special single-purpose accounts we open, or special lockbox or vault, and hold the collateral for the duration of the loan. We use major world banks exclusively for this purpose, which include, but are not limited to, JPMorgan Chase, Wells Fargo Bank, HSBC, Bank of China-Hong Kong, BNP Bank Paribas.
We rarely simply secure the existing account held by the Borrower – it most likely must be transferred. Once transferred, we close on the loan.
Evaluating the Collateral:
At no cost, we carry out preliminary due diligence on the collateral. We do NOT rely on appraisals, third parties nor outside consultants. We DO NOT make the final evaluation of the collateral – this is carried out exclusively by the Bank Officer at the bank/institution that is selected to manage this particular transaction.
Excluded Collateral:
We do not accept precious gems such as rubies, sapphires, emeralds, etc. We do not accept gold or silver still to be mined. We do not accept stand-alone insurance policies, particularly insurance wraps, which have value only in the event of a default. We do not accept art, nor art collections, as they are too difficult to value and difficult to resell. We do not accept anything that cannot be moved and/or secured.
We do not accept hard assets such as real estate, vehicles, ships, aircraft, etc. (We may make loans using these items as collateral – ask for our JV $ Debt Collateral Financing Program.)
Leased SBLC’s do not qualify – they cannot be pledged - they must be owned. Collateral under agreement to be acquired using borrowed funds will also not qualify – again, they must be owned before we fund.
Rates and Terms:
Interest rates range from 6.0% to 10.0% simple interest per annum, plus Points that range for 5% to 8%. The loan is for 12 months and may be renewed for another twelve at the same interest rate. Points are collected only one time, at the beginning of the first year.
Non-Recourse:
The loan is pure non-recourse. There are no personal guarantees at all; no bad-boy clauses nor other similar claw-backs.
Fees:
There is no fee nor any charge to evaluate a submission, nor to carry out any preliminary due diligence on the Borrower nor the collateral, nor to issue loan terms and conditions after we are satisfied with the collateral. When these terms are accepted, there is a US $15,000 legal fee to draw up the Master Loan Agreement, any loan contract addenda that may be involved, all filing fees and any charges to close the loan. Once paid, and the contract is issued, the legal fee is considered earned.
At closing, from loan proceeds, the Points are drawn as well as a 12-month interest reserve is set aside, with interest paid monthly during the loan term. Intermediary’s fees are also drawn from loan proceeds and paid to the intermediary, based on a fee agreement with the Borrower. The Borrower receives the net loan amount at closing, deposited into a special purpose account we open in Borrower’s name, or other account(s) as directed by the Borrower.
To Begin:
Email Stan Jones (Intermediary) for Referral Fee Agreement.
Next, email a copy of the instrument, and/or a detailed description of the collateral, so that we fully understand the collateral being provided.
The Lender will carry out a preliminary evaluation, and if deemed acceptable, will issue pricing.