Asset Monetisation
Information about the Monetisation of Bank Instruments
Monetisation is a low-cost, low-risk method of trade finance that monetises inactive financial instruments. This involves converting a bank instrument into a legal tender such as cash or cash equivalents. You must be in possession of the instrument and the bank instrument must be issued by a well rated bank and must be a negotiable instrument.
Monetising a bank instrument can be done within 14 days after all documents are signed and verified, this process allows you to either:
1. Monetise instruments for cash
2. Monetise instruments for buy/sell platform entry.
Each one can be via non-recourse or recourse funds depending on the agreement.
Steps for Processing Monetisation of Bank Instruments
Step 1:
Once an contact is signed by both parties the client will instruct their bank to send a SWIFT MT799 to the bank coordinates provided by the monetiser
Step 2:
The monetisers will provide confirmation of receipt for the SWIFT MT799 from the clients bank and reply with a SWIFT MT799
Step 3:
On receipt of the monetizers bank SWIFT MT799 the clients bank will deliver the bank instrument via SWIFT MT760 to the monetizers bank
Step 4
Upon confirmation and delivery of the SWIFT MT760 the bank instrument monetizer will within a maxim of four banking days grant a non-recourse loan for the LTV (Loan to Value) agreed from its nominated bank to the client
Standby Letters of Credit (SBLC), Bank Guarantees (BG), Certificates of Deposit and, Letters of Credit are sought at this point, other assets will be reviewed upon request.
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