DL Financial Ltd.: January 2016

Wednesday, January 27, 2016

What Are The Uses of a Bank Guarantee (BG) or SBLC?

What can a SBLC be used for?
SBLC’s (and BG’s) can be used to enhance your ability to apply for a line of credit with your bank; in other words, it can be used as collateral when your bank is asking for additional comfort when you ask them to fund your project. We can help you acquire an SBLC.

The SBLC’s we deal in are genuinely 100% cash-backed and therefore usable as collateral. Our issuers only use top 25 World Banks – mainly from Europe like HSBC, Deutsche, UBS etc. This guarantees world wide acceptance of your SBLC.

These SBLC’s are generated by “someone” blocking their funds on your behalf, so we speak of a “leased” SBLC. In other words the SBLC is owned by the issuer and you are the beneficiary.

The SBLC is generally issued for 1 year and 1 day, but can easily be extended up to 5 years. (It is possible to get an SBLC for only 6 months). Once issued the SBLC is transferred to your bank via the Swift protocol of MT760.

Of course, Leasing of an SBLC comes at a cost. And to be very honest: at a high cost. Financing your project by using an SBLC is very expensive. First you need to pay money to the issuer of the SBLC plus commission to the consultants facilitating the process, Then you need to give the SBLC to your bank, who are providing a Line of Credit against the SBLC, which may only be up to 90% LTV or less. And usually, your bank will charge a one off fee to ‘monetise’ the instrument and also charge interest on the drawn down loan amount.

To successfully apply for an SBLC you need to be aware of four vital points:
a) You need to have a good project
b) You need to have a bank funding your project based on the supporting collateral of an issued SBLC
c) You need to have the money to pay for the leasing of the SBLC, you may also need to pay brokers if they are involved in the transaction.
d) You need to have a believable and realistic exit strategy to repay the loan and return the SBLC at the end of the term

All the SBLC’s we deal with are callable, assignable, fully transferable and lienable.

If you are thinking of using an SBLC to participate in a High Yield Trade Program, we are more than happy to assist you in acquiring the SBLC and placing it into trade.

However, you need to be very sure you are able to pay the leasing fees of the SBLC before issue, as most providers will not allow the instrument to be taken into a Trade Program unless and until the fee is paid. You cannot pay the lease fee from the program returns.

It is also not possible to use an SBLC to secure a commodity trade and pay for the SBLC out of the profits from the transaction. When paid for and used correctly, these instruments provide numerous lucrative options. we can provide BG’s, SBLC’s and CD’s, which can be blocked or delivered via SWIFT.

Typical projects we have had successful applications for are:

- Construction and Development
- Resorts -Building or Upgrading
- Growing a Company
- Trade Programs

DL Financial Limited are genuine and reliable providers of loan, international project funders, Lease bank guarantee providers & providers of sblc, dlc and letters of credit. Others Talk, but DL Financial Delivers. So its time you became a customer of DL Financial Ltd so you can feel the difference.

Kindly contact us today for all your financial needs.

Skype: dl.financials.limited

Website: http://www.dlflimited.net

Email: info@dlflimited.net OR credit.finance2012@gmail.com

NOTICE: Brokers are 100% welcomed and protected. Our brokers are paid handsome commission for every successful transaction. If you want to be our broker or company representative kindly send us email for more information.

Projects Funding and Joint Venture

Our company gladly introduce services for business owners and investors interested participate in Project Funding via PPP as well as participation in Joint Venture (JV) with our company, our clients and partners together.

The below classification of services we can provide to your business needs in accordance to your expectations:

1. Project Funding Loan of your project if you rwa participate in your project with 20% of capital on your side and we can offer sources for funding of your project with borrowed funds from our banks partners and private loans. We able find a solutions for your business and fund your project up to 80% of capital needed for your project. We can offer for your business project funding via debenture loans, private loans, banking instruments or project funding via PPP trading with high return on investments, with profit participation in your project.

2. Project Funding via PPP trading with high return on investments, with profit participation in your project. Requirement for participating in project funding via PPP is liquid capital 20% of face value of your project. The capital will be used to obtain a credit facility through our bank partners and platform. Finally funds will be multiple in trading x10-15 times more than initial investments and will be arranged for trading with high net return on initial investments. The profit will be paid weekly to bank of investors after that can invest funds in project.

3. Project Funding via Joint Venture (JV) time to time we receiving unique, even genius business projects needed funding. Very often we send our proposals with new projects to our clients and partners with possibility participate in projects via Joint Venture with our firm.
We only offer projects where our company ready participate with our self capital not less than 50% of each project. If you wish our company, our clients, partners to be partner in your genius project in Joint Venture please fill the form below and send to us your files.

Highlights

We will consider financing projects in many countries worldwide; including the UK, Europe, Africa, Asia and North and South America.

Minimum requirements of $5 million considered, whilst funding in excess of $50 million is preferred. Maximum has no effective limit with major projects being of particular interest.

Up to 85% of GDC (Gross Development Costs) for acquisition and construction. In some special cases 100% finance can be provided.

Maximum 75% of GDV (Gross Development Value)

Loan solutions preferred. Capital and interest moratorium (roll up) can be accommodated.

Sectors include: Property Development (office, retail, infrastructure, industrial, residential, resorts, etc), Renewable Energy, Waste to Energy and metal Mining.

Facilities available in most major currencies.

Our facilities are not just limited to acquisition and construction. Refinancing, working capital, as well as refurbishment or conversion can be considered.

Brokers protected.

project finance

Listed below is the information we will require to get your project funded. Some information may be applicable to your project and some not. Please provide as much relevant information so we can help you get funded:

o Business Plan
o Executive Summary
o Proforma Financials
o Balance Sheet
o Resumes of Principals
o Resume of Developer and List of Projects Completed
o Appraisal Report (if applicable/ must be performed by an MAI Certified appraiser or equivalent)
o  Feasibility Study
o Breakdown of Funds already invested in the project
o Detail Use of Funds
o Comprehensive Exit Strategy
o  Power Purchase Agreement
o  Off Take Agreements / Letters of Interest / Contracts etc
o  Assays/Geological Reports/ Proof of Reserves

Kindly contact us today for all your financial needs.

Skype: dl.financials.limited

Blog: https://dlfinancial.wordpress.com

Website: http://www.dlflimited.net

Emails:  info@dlflimited.net OR credit.finance2012@gmail.com

NOTICE: Brokers are 100% welcomed and protected. Our brokers are paid handsome commission for every successful transaction. If you want to be our broker or company representative kindly send us email for more information.

Saturday, January 23, 2016

Projects Funding and Joint Venture

Our company gladly introduce services for business owners and investors interested participate in Project Funding via PPP as well as participation in Joint Venture (JV) with our company, our clients and partners together.

The below classification of services we can provide to your business needs in accordance to your expectations:

1. Project Funding Loan of your project if you rwa participate in your project with 20% of capital on your side and we can offer sources for funding of your project with borrowed funds from our banks partners and private loans. We able find a solutions for your business and fund your project up to 80% of capital needed for your project. We can offer for your business project funding via debenture loans, private loans, banking instruments or project funding via PPP trading with high return on investments, with profit participation in your project.

2. Project Funding via PPP trading with high return on investments, with profit participation in your project. Requirement for participating in project funding via PPP is liquid capital 20% of face value of your project. The capital will be used to obtain a credit facility through our bank partners and platform. Finally funds will be multiple in trading x10-15 times more than initial investments and will be arranged for trading with high net return on initial investments. The profit will be paid weekly to bank of investors after that can invest funds in project.

3. Project Funding via Joint Venture (JV) time to time we receiving unique, even genius business projects needed funding. Very often we send our proposals with new projects to our clients and partners with possibility participate in projects via Joint Venture with our firm.
We only offer projects where our company ready participate with our self capital not less than 50% of each project. If you wish our company, our clients, partners to be partner in your genius project in Joint Venture please fill the form below and send to us your files.

Highlights

We will consider financing projects in many countries worldwide; including the UK, Europe, Africa, Asia and North and South America.

Minimum requirements of $5 million considered, whilst funding in excess of $50 million is preferred. Maximum has no effective limit with major projects being of particular interest.

Up to 85% of GDC (Gross Development Costs) for acquisition and construction. In some special cases 100% finance can be provided.

Maximum 75% of GDV (Gross Development Value)

Loan solutions preferred. Capital and interest moratorium (roll up) can be accommodated.

Sectors include: Property Development (office, retail, infrastructure, industrial, residential, resorts, etc), Renewable Energy, Waste to Energy and metal Mining.

Facilities available in most major currencies.

Our facilities are not just limited to acquisition and construction. Refinancing, working capital, as well as refurbishment or conversion can be considered.

Brokers protected.

project finance

Listed below is the information we will require to get your project funded. Some information may be applicable to your project and some not. Please provide as much relevant information so we can help you get funded:

o Business Plan
o Executive Summary
o Proforma Financials
o Balance Sheet
o Resumes of Principals
o Resume of Developer and List of Projects Completed
o Appraisal Report (if applicable/ must be performed by an MAI Certified appraiser or equivalent)
o  Feasibility Study
o Breakdown of Funds already invested in the project
o Detail Use of Funds
o Comprehensive Exit Strategy
o  Power Purchase Agreement
o  Off Take Agreements / Letters of Interest / Contracts etc
o  Assays/Geological Reports/ Proof of Reserves

Kindly contact us today for all your financial needs.

Skype: dl.financials.limited

Blog: https://dlfinancial.wordpress.com

Website: http://www.dlflimited.net

Emails:  info@dlflimited.net OR credit.finance2012@gmail.com

NOTICE: Brokers are 100% welcomed and protected. Our brokers are paid handsome commission for every successful transaction. If you want to be our broker or company representative kindly send us email for more information.

Export Usance Letter of Credit

FINANCING FOREIGN SALES With Export Usance Letter of Credit

An exporter in the United States can offer terms to an overseas buyer through the usance (time) letter of credit mechanism. An export letter of credit may call

for the beneficiary’s drafts to be drawn at a certain number of days after sight or after the bill of lading date. Typically, the drafts are drawn on the exporter’s

bank. Once the buyer’s bank has accepted the documents under the letter of credit as a conforming drawing, the “accepted” draft becomes a banker’s acceptance.

The advantages of the usance (time) letter of credit are:

The exporter can give the foreign buyer the option of financing its trade cycle at the banker’s acceptance rate in the United States.

·For buyers in developing countries, the banker’s acceptance rate is usually a much better rate than they can access in their own country.

·The exporter’s credit risk is the U.S. bank or foreign bank on which the draft is drawn as an irrevocable undertaking to pay the exporter at maturity.

·In many cases, the exporter can finance the foreign sale at a better rate under the usance letter of credit than under its own bank line of credit based

on Prime.

·The exporter can extend financing terms without using its own line of credit.

For example, a Mexican company, Alfa Industries, opens a $500,000 time letter of credit with its bank, MexiBank, in favor of the beneficiary in the United

States, Beta Corp.. The time letter of credit calls for the draft to be drawn on Bank of America at 90 days after the bill of lading date. Since the draft is drawn on Bank of America, they are taking the credit risk of MexiBank. Thus, it is important for the exporter to check with Bank of America before the letter of

credit is issued to determine if Bank of America has sufficient availability under its credit limit to MexiBank to accept this transaction. (An alternative to

having the draft drawn on Bank of America is to have the draft drawn on Mexibank. The exporter thus upgrades the credit risk from that of his buyer to

that of the buyer’s bank. But, Bank of America no longer has credit exposure to MexiBank under this alternative and payment will not be coming from Bank

of America.)

The goods are shipped on April 14. Alfa Industries presents the documents required by the letter of credit to Bank of America on April 20, accompanied

by a 90-day draft maturing on July 13. Bank of America examines the documents; finds two discrepancies, and sends the documents to

MexiBank in Mexico by courier. On April 24 MexiBank notifies Bank of America by an authenticated SWIFT transmission that the buyer has waived the

discrepancies, enabling MexiBank to give Alfa Industries the title documents and obligating MexiBank to pay Bank of America on July 13. This discrepancy

waiver in turn enables Bank of America to stamp the draft drawn on it as “accepted”, thereby creating a banker’s acceptance.

Once the banker’s acceptance has been created, the exporter has two choices:

1) Wait until July 13 to get the $500,000, knowing that its credit risk is now that of Bank of America. If this option is picked, Beta Corp. will be charged a

per annum commission of 1.5% ($833.33) representing Bank of America's price for accepting the Mexican bank's risk for 80 days.

2) On April 24, discount the draft with Bank of America at the banker’s acceptance discount rate of 6.4% plus the commission of 1.5%. In this example, Beta Corp. would be discounting the banker’s acceptance for the time period of 80 days left until maturity at a rate of 7.9% based on a year of 360 days, giving a total discount of $8,777.76. Beta Corp. will receive the net proceeds of $491,222.24.

A significant advantage to Beta Corp. is that it can finance this foreign receivable at a cheaper rate than under its bank line of credit, priced at one

percent over Prime (9.5%). In this example, Beta Corp. is saving 2% and does not have to utilize its own bank line to finance the export sale.

The Mexican buyer could not receive such advantageous pricing from MexiBank based on its credit rating. If it were financing this transaction with MexiBank under its Peso denominated line of credit, it would be paying 16% to 18%. However, Alfa Corp. does have the commission costs of opening the

letter of credit as well as the 25% cash margin requirement required by MexiBank for credit and foreign exchange reasons.

Banker’s Acceptance Discount Rates

These rates vary with the amount and tenor; the larger the amount and the smaller the number of days, the less the rate will be. Banker’s acceptance

rates are quoted in the third section of the Wall Street Journal under “Money Rates” for periods of 30, 60, 90 and 180 days. These quoted rates are for

million dollar transactions and represent the “best” rates. Since the banker’s acceptance discount rate is approximately equal to the bank’s “cost of funds”;

the all-in discount rate includes the commission, which covers the credit risk and operational overhead assumed by the U.S. bank. The U.S. bank can, in

turn, re-discount or sell these bankers' acceptances to investors in the money markets, thereby providing a liquid source of funding for the bank.

Banker’s Acceptance Rules

The rules for banker’s acceptances are established by the Federal Reserve Bank. Although banker’s acceptances can be created for the domestic

storage of commodities, they are most commonly created to finance current (within 30 days of the bill of lading date) import and export transactions.

Banker’s acceptances can be automatically created within the structure of a time letter of credit or they can be requested by an importer or exporter from

its bank to finance its trade cycle for up to six months. The tenor (number of days) of the acceptance should match the cash conversion cycle from

inventory, to accounts receivable, to cash.

DL Financial Limited are genuine and reliable providers of loan, international project funders, Lease bank guarantee providers & providers of sblc, dlc and letters of credit.

Kindly contact us today for all your financial needs.

Skype: dl.financials.limited

Blog: https://dlfinancial.wordpress.com

Website: http://www.dlflimited.net

Emails: info@dlflimited.net OR credit.finance2012@gmail.com

Usance Payable at Sight (UPAS L/C)

UPAS L/C, Usance Payable at Sight, is a derivative from the standard LC type (Sight L/C & Usance L/C). It is actually the combination between Sight L/C and Usance L/C. Simply saying, UPAS is an Usance L/C that is payable sight basis to the seller (beneficiary), while the payment settlement from the applicant (buyer) to the issuing bank will made on at the end of usance term.

Do you still remember one the biggest problem in trade finance? Yes, it is the different interest between the buyer and seller, which the buyer always want to have longer credit tenor, while the seller prefer to give shorter credit tenor to the buyer. This difference have given financial institution an idea to develop a letter of credit that could accommodate both interest through UPAS L/C.

If you still confuse, let’s discuss it using real case example,

Company A is a flour manufacturer in Indonesia, who on regular basis import wheat from Company B in Brazil. As you know, company A need to process the purchased wheat into floure, before they could sell and the flour to the end buyer and collect the payment to pay the exporter (Company B) in Brazil, say compay A’s cash to cash cycle is 90 days. Having said so, the most suitable trade scheme for company A is to use Usance L/C 90 days.

However, company B is not comfortable of the risk of Indonesian Bank / country risk, thus they refuse company A’s request to use Usance L/C 90 days, instead they are forcing company A to keep using Sight L/C.

In order to accommodate both parties’ requirements, the issuing bank propose a 90 days UPAS L/C solution to both parties. 90 days UPAS L/C means that it is Usance L/C 90 days to the applicant (buyer) and it is Sight L/C to the seller (beneficiary). Having said so, the issuing bank provides financing to the applicant (buyer) so the seller could still receive the payment at sight basis, while the applicant could still enjoy the 90 days credit term from the bank.

Since the issuing bank already paid the seller at sight basis, while they will only get the principal payment from the applicant (buyer) at the end of usance term (90 days), thus the issuing bank will charge financing interest to the applicant (buyer). The payment made by the bank to the seller is final (non recourse basis), thus it the same as sight L/C for the seller.

Wording in L/C :

42.C. Draft at.. 90 days after B/L (or other benchmark)

47. Additional Condition

Eventough the usance period of 90 days, this L/C is payable to the seller at sight basis. Financing interest is borne by applicant.

Note : The wording can be different among different issuing bank, but the wording should have the same meaning as the above.

UPAS L/C Diagram

Example : 90 days UPAS L/C

UPAS L/C, Usance payable at sight L/C DL FINANCIAL

1. Sales contract between buyer and seller
2. Buyer (applicant) request their bank (issuing bank) to issue a 90 days UPAS L/C for the seller
3. Issuing bank , upon receiving the request, issue a 90 days UPAS L/C to seller’s bank (advising bank)
4. Seller’s bank (advising bank) then advise the UPAS LC to the seller (beneficiary)
5. Seller then ship the goods to the buyer
6. Upon shipping the goods, the seller prepare all documents as requested by the UPAS L/C, and then present the documents to their bank / bank that is specifically nominated by the UPAS L/C to receive the documents (negotiating / nominated bank).
Note : Usually advising bank & negotiating bank is the same bank, but could be different.
7. Negotiating bank checks the presented documents, then deliver the documents to the issuing bank
8. Issuing bank upon receiving the documents sent by the negotiating bank, will start check the documents within max 5 banking days, and once they find that the presented documents are comply with the UPAS L/C terms and conditions, they will pay the seller through the negotiating bank right away
9. Negotiating bank will credit the payment proceed from issuing bank to seller’s account with them
10. Buyer provides their payment undertaking for principal and interest on maturity date (day 90) to to the Issuing bank, can be in the form of signed draft (Bill of Exchange) or Promissory Notes.
11. Issuing bank then release all documents to the buyer, including Bill of Lading.
12. Payment by applicant (buyer) to the issuing bank on day 90 (maturity date) for both principal (P) & Financing Interest (I)

UPAS L/C Timetable

Kindly contact us today for all your financial needs.

Skype: dl.financials.limited

Blog: https://dlfinancial.wordpress.com

Website: http://www.dlflimited.net

Emails: info@dlflimited.net OR credit.finance2012@gmail.com

Sunday, January 10, 2016

What you need to know about Monetizing Bank Instruments

One thing I have noticed about this niche of finance is that common sense does not prevail. Allow me to be even more frank. Most people don’t know what they are doing.

Yeah you heard me right.

Most people, brokers included, have absolutely no clue what it takes to be successful in Monetizing Bank Instruments.

Many brokers think that if they have an instrument, then someone who is involved in monetizing bank instruments will automatically give them several million in cash and it’s all over. In reality however, the truth is much different.

People who purchased a Bank Guarantee, a Standby Letter of Credit, or other bank instrument are often shocked to learn that their newly purchased instrument was never designed to be monetized and is therefore worthless for their intended purposes.

Bank Guarantees can be worded specifically for monetization, i.e. to secure credit lines. Not all Bank Guarantees are intended for monetization so it is important to understand what you paying for and what you are getting to ensure that it will work for your intended purpose.

If you don’t have a bank instrument, we suggest acquiring your BG from us, this means that the monetizing process will be easier, smoother and faster since we provided the instrument through our prime banks.

The truth of the matter is that having the money to buy an instrument doesn’t mean that your project will get funded or that your bank instrument can or will be monetized. Of the limited providers who work with Monetizing Bank Instruments, it is very possible that none of them will be interested in monetizing your Bank Guarantee.

What you need to know…

First things first. You should know who will be monetizing your instrument before you purchase it. You should also understand that not all BG’s or SBLC’s are the same.

Pay attention to where the BG is coming from. Is it from Europe, Africa or Asia? The jurisdictions and legal ramifications are not the same and you should know and understand the differences. This will also affect the instrument’s cost and acceptability to third parties.

Read the language and text of your SWIFT MT-760, Bank Guarantee or SBLC carefully. Pay attention to every word and have it reviewed by professionals and the beneficiary prior to paying for anything. Verify if the bank instrument is intended for monetization and find a supplier who will monetize it in advance.

I already bought an instrument! Now what?

This is where the confusion and frustration sets in. You have your BG or SBLC and your monetizer fell through. You now need another provider that specializes in monetizing bank instruments.

DL Financial Limited can help, however, Your Bank Guarantee is not enough. Just showing someone your BG or SBLC text will not be sufficient to establish a credit line. Of course the text is the first thing we will look at but its far from the only thing we will consider.

What else is needed to be successful in Monetizing Bank Instruments?

Several things. A business plan and solid relationships are a good start. In other words, you must have an actual project and a professional business plan.

The key is that you must have your paperwork together and you must have a tangible way to make money from your project or investment. Ultimately the investor must like and believe in your project. Anyone can purchase a Bank Guarantee but only those who have done the hard work will actually get in monetized.

Be prepared to submit a full CIS (or Bio/Application) on your company and its officers along with a complete business plan and the text of your BG or SBLC. Explain how you acquired the BG and why you need it monetized.

Go into detail about how you plan to exit this strategy and how you intend to return the instrument at the end of the term. Be aware that you may need to show POF (bank statements, not blocked funds) in many cases. Good luck and happy new year to all our numerous customers from around the world. My wish is that this year all your dreams and plans will come to fruition.

If you want to lease, rent or purchase a BG, SBLC, DLC, letters of credit etc or you want us to monetize your instrument, kindly contact us with below information.

Skype: dl.financials.limited

Blog: https://dlfinancial.wordpress.com

Website: http://www.dlflimited.net

Emails: info@dlflimited.net OR credit.finance2012@gmail.com

Getting Your Projects Funded, Project funders, project financers

Having a great idea is not enough to get millions of dollars of funding, or even any money at all. An idea is just a start.

Creating a plan, including a business plan, financial projections, marketing research and feasibility studies involves money, time and energy.

The effort of making that plan available to potential investors requires even more funds. Throwing it out on free platforms will not do the trick. It’s too busy there. Quality investors don’t have the time to roam all these solicitations. Actually, they don’t have time for any solicitations at all.

An investor or funding source needs to be approached professionally. By introduction or recommendation for example, or with a well crafted message. Find websites where investors look for funding opportunities, go to business plan contests, attend investing conferences.

Once the plan gets into the hands of an investor, and the investor shows interest, the end is not in sight yet. This is just the beginning. Before the funding source digs in its pockets to provide funds for you, it needs to check your funding proposal.

The questions are:

Who is this person? What is their experience? Have they done business before?

What kind of qualified team will execute this plan? What are their credentials?

Are the numbers and projections quoted realistic?

Are the facts stated in the plan true?

What are the risks involved, what will you do to mitigate the risks?

How will I get my money back, what kind of exit is possible? How long will it take?

What is the potential profit in this venture?

What is the competition like?

The funding seeker will have to answer these questions. The way he or she formulates these replies tells the investor a lot. Replies that are to the point, with quality information and complete documents are necessary.

In order to verify all of this information, the funding source will have to examine the project. This is called due diligence. There will be all kinds of expenses:

Travel expenses

Accountants fees

Analysts fees

Legal expenses

Funding sources will not pick up all of these expenses anymore, things have changed in the financial world. Investment banks and venture capital firms are well paid professions. They don’t work for free. They do charge hefty fees.

Loan originators may be a bit more lenient and add on points to the settlement date of the loan, however, they need to do their homework. They are not banks who have you or the public in general as a customer. They want to be paid for their day-to-day routine. No matter what the outcome is of their time and energy invested in your proposal, they need to be paid.

Conclusion: in order to raise funds, you need some money. You need a budget to find funding. Use savings, partners, a small loan, or ideally, get started with your business. Start small, prove that it works and that it is profitable. It will buy you a lot of goodwill from your funding sources.

An afterthought: A great way to raise funds is to issue your own securities. It’s like turning the tables in the funding process. You’re the one in charge, setting the conditions. This prevents mistakes in the compliance process for raising capital with the public. The JOBS Act has relaxed the rules for fundraising.