Cash as an Asset
Liquid cash that is sat on the balance sheet of an individual or Companies’ bank account is the most versatile asset one can posses. It is the fastest route to project funding since their is no element of ‘monetization’ required to utilize it in creating capital to fund a project.
Cash can be used as collateral with nearly all institutions who offer project funding solutions, many of whom do not require the cash fund to be moved in order to participate in a trade program or platform that generates capital or equity.
An example of using cash as an asset with very low risk would be the client producing a bank statement tear sheet signed by their respective bank officer/s creating a type of ‘financial instrument’ that can be leveraged with a funding organisation against their own credit line or cash deposit, and it is this asset that is placed into a trade program or platform and used to create capital for the client.
Bank Instruments Monetization
Monetizing bank instruments is the process of liquidating financial instruments by converting them into legal tender. We can monetize or lend on just about any bank instrument to be used for project funding, move them into various trading platforms who will leverage the face value of the instrument or offset it against an active credit line which aollws the trader to draw down from thier credit line and this cash is placed into trade which produces the capital to finance various development projects. We can monetize SBLC’s, DLC’s, BG’s, MTN’s and BD’s. This can be accomplished in 30-45 business days.
The instrument needs to be a Cash Backed Instrument such as Standby Letter of Credit (SBLC), Bank Gurrantee (BG), Medium Term Note(MTN), or an Investment Grade Bond.
The instrument must be assignable and transferable and will need to be delivered to the lender via SWIFT or EuroClear.
Hard Assets Monetization
Monetizing hard assets can be achieved providing their is a credit line in place and the owner of the credit line is able to leverage the asset in order to trigger part of that credit line, and it is this newly released cash that is then used to enter a trade program or asset management program
These Assets must be held in either a secure bonded warehouse or a Rated Bank preferably each with the supporting documentation such as an appraisal or certificate of analysis from a known or vetted organisation such as IGAS Gmbh, and the institution’s issued SKR or Safe Keeping Receipt issued from a Rated Bank so that the bank can issue a SWIFT message offering verification or ‘blocking’ of the asset under the term ‘Full Banking Responsibility’.
Some examples of Hard Assets would be Copper Isotope Powder, Nickel Wire, Precious Gemstones, Gold, Silver and more.
The standard submission pack to apply for this type of monetization would be as follows:-
- a Client Information Sheet (CIS) including a passport copy.
- Asset Appraisal or Certificate of Analysis
- Certificate of Deposit into the Securities House, Bank or Bonded Warehouse
- Safe Keeping Receipt (SKR) issued from the Securities House, Bank or Bonded Warehouse
- any more documentation that the client feels will support their application
The Loan to Value or LTV offered by the credit line owner varies depending on certain factors, however for most hard assets the offer is generally low compared to other such assets, since the credit line owners do not set priority to this type of collateral.
Please contact us to discuss any aspect of asset monetisation with us – PLEASE NOTE – as of 14/08/2019 we do not have any partners who are willing to collateralise speciality metals, or precious stones that are NOT held within a rated bank.
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