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 program that generates capital or equity release from a lender’s line of credit designated for project funding.
An example of using cash as an asset with very low risk would be the client producing a Certificate of Desposit creating a type of ‘financial instrument’ that can be leveraged with a funding organization against their own credit line or cash deposit, and it is this asset that is used to create capital for the client.
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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