Bank instrument monetization is simply the process of liquidating different instruments usually backed by a cash, secured account or assets into legal tender in order to aid in the development of projects, to facilitate trade-finance, help to secure Loans, Real-Estate Development or General Business Expansion.
Bank instruments are very popular because there are no traditional credit requirements or down payments associated with it. A favorable compliance report with Homeland security and international money laundering laws is required for the approval of bank instrument monetization. Stand by letter of credit is important for monetizing any bank instrument.
Bank Instrument monetization could be used for a list of products:
- Triggering the release of Funding from a Foundation / Trust / Pension Fund
- Used to qualify a Client in order to Tender a formal BID
- Used to enhance or trigger a Commodity Trading Credit Line using DLC purchases.
- Used as a secondary security to mitigate the Transaction Risk to Lending institution
To make better decisions, here are some of the mistakes you need to be aware of:
- Not checking the ability of the service provider
- Neglecting to assess terms and conditions
- Opting services from brokers
- Forgetting to create a backup
If you take the time to utilize this type of investment option carefully, you can find a safe alternative to traditional financing for many different situations.
Warning: Fraud in bank instruments monetizing companies is on the rise. Be careful! Individuals monetizing bank instruments are often scam artists. They may promise that you can use a bank instrument in private placement programs or collateral for loans.
The major scam comes in when you cannot find someone who will accept a bank instrument as collateral or proof of fund. When using this particular monetizing instrument, it is a good idea to contact several different banks and lending institutions in order to negotiate the best terms possible. Bank Instrument monetization should only be done with major World Banks who can afford the security that you deserve in your investments.