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What kind of financial products are available?

Here we describe the options that are available through the global network of SELECTIVE FINANCIAL SERVICES. Contact your Relationship Manager relationshipmanager.sfs@gmail.com

RWA Letter, ready willing and able

Proof of Funds / Verified Funds: This service is a perfect, low cost & fast way to joint venture with a strong partner to your current financial profile, show reserves or buy time in your transactions with verified funds. Different formats may include bank letters, phone/fax verification, online account access, verification of deposit form (VOD), TELEX, Swifts, DTC or Euroclear screens and/or account statements as

Proof of Funds, Bank Comfort Letter, Account Statement Tear Sheet, Blocked Funds Letter, Verification of Deposit, month to month account service for 12 months with extensions

Through our network of Investors, we can provide you with a Proof of Funds from over 50 banks worldwide including top 25 US and European institutions, that you can use to advance your financial standing, secure contracts, to facilitate transactions, including commodities exchanges, Import/Export transactions, or any other creative method. This can done through TEAR SHEETS AND BANK COMFORT LETTERS, issued in your company or an individual’s name, from $100,000 to $100,000,000 USD or EUR, sent from US or International Banks and SWIFT VERIFICATION, verified by SWIFT series MT 103, 799, 798, 999, SWIFT language is negotiable and can be modified per transaction, from $100,000 to $100,000,000 USD or EUR

Cash Accounts: Proof of Funds cash collateral accounts, can be arranged from which various Proof of Funds Letters can be provided, such as a Bank Comfort Letter, RWA Letter, Verification of Deposit Letter, Blocked Funds Letter, as well as account statements and tear sheets. Fully verifiable via banker phone call, tear sheet, online, from $100,000 to $100,000,000 USD or EUR, issued in your company or an individual’s name. These letters can be issued by bonded courier, bank to bank email, fax, ktt – key tested telex, or through the SWIFT system, or Euroclear.

Bank Instruments SBLC/BG: Stand by Letter of Credit & Bank Guarantees are financial instruments that may reserve, confirm or promise funds from one institution to another or to a business. Letter of Credit, Standby Letter of Credit SBLC,  Bank Guarantee BG,  Certificate of Deposit CD, 

SBLC/BG: Stand by Letter of Credit as well as Bank Guarantees are financial instruments that may reserve, confirm or promise funds from one institution to another or to a business, often by SWIFT or KTT.

Bank Guarantee (BG) Bank Instruments: Bank Guarantees are negotiable financial debt bank instruments issued by a guarantor bank on behalf of the applicant to mitigate risk on behalf of the beneficiary. It may be used to assist in trade finance, international trade, domestic trade, and various other types of contracts where the backdrop of the vetting third-party, the issuing bank, could be used. When a bank issues a Letter of Guarantee to a beneficiary bank it looks at the credit worthiness of an applicant, and not the transaction at large. Thus the ability to acquire bank instruments like a Bank Guarantee largely is based on the relationship it has with a client.

The Bank Guarantee, BG, is very similar to that of a Letter of Credit, LC, in that it guarantees payment on behalf of its client to the beneficiary. Bank Guarantees are usually used in the event of default. If for instance a purchaser of goods issues a BG to the seller of goods and if after delivery payment is not made for some or the contracted amount, these bank instruments act like a check or draft allowing the Beneficiary to cash it in.

A Leased Bank Guarantee can be used for a whole variety of purposes. They are used in trade finance, global finance, project finance and credit enhancement

Leased Bank Instruments can be used to enhance credit

Leased Bank Instruments can be used for Private Placement Investment Programs

Leased Bank Instruments can be used to show Proof of Capability to enter larger investment opportunities

Leased financial instruments can be used to attain loans and funding

Leased financial instruments can be used as collateral for any transaction

Leased instruments can be blocked via SWIFT MT 760 / MT 799

In order to lease a Bank Guarantee one must have established banking relationships with significant financial institutions. Large banking institutions utilize the principles of financial asset leasing quite frequently.

The fundamentals: Gain access to another party’s financial assets for a fee or other consideration for a set term. Once the term is up the instrument is either returned to the original asset holder or the bank instrument is extended for another term. Either the asset holder does a joint ownership with the borrower, or the instrument is transferred in ownership outright during the leased Bank Guarantee term. This way there is no issue with the title of the instrument. During the term of the instrument lease, the bank asset is made available with all the same rights as if the instrument were acquired through an equity purchase. For all purposes intended, the new owner may deliver, lien, encumber, monetize, collateralize, and use the instrument as security. Usually the fees range from 1 to 3 % a month to 15 to 17 % per year.

The asset holder will want to ensure the leased Bank Guarantee is returned at the end of the term free of any liens or encumbrances. This means any loans, guarantees, and obligations against the debt asset are released prior to the term expiration. A personal or corporate guarantee usually is not enough. Most asset holders require a bank undertaking that clearly illustrates a bank commitment for the return of the instrument free and clear prior to expiry. The bank commitment must come from a financial institution given high ratings from a respected rating agency, for example Standard & Poor’s.

The terms and conditions of the borrower agreement will vary. A highly rated bank undertaking provides the guaranteed safe return of the asset. The borrower becomes the owner in fact of the asset and may use it in almost all ways they would had they had equity ownership. A leased Bank Guarantee is similar to a home leasing, or auto leasing. But remember, the owner cannot sell the asset.

Disclosure of the nature of ownership: You would not have a leased home or car and list it as an owned asset outright, neither would you list a home with a mortgage loan against the title and claim it is a home free and clear. Full disclosure of the nature of the ownership is crucial in finance. False representation can be construed as willful intent to misrepresent and defraud the nature of a financial asset, which is a financial securities crime. When going into a financial transaction it is wise to represent clearly with all parties involved the nature of ownership of the instrument.

Standby Letter of Credit (SBLC) Bank Instruments: The ICC, International Chamber of Commerce in the Uniform Custom and Practice for Documentary Credit ,UCPDC, defines letters of credit as follows: An arrangement, whereby a bank, the Issuing bank, acting at the request and on the instructions of a customer, the Applicant, or on its own behalf, is to make a payment to, or to the order third party, the beneficiary, or is to accept bills of exchange (drafts) drawn by the beneficiary. (A) Authorized another bank to effect such payments or to accept and pay such bills of exchange draft. (B) Authorized another bank to negotiate against stipulated documents provided that the terms are complied with.

Unlike traditional commercial letter of credit bank instruments, where the beneficiary obtains payment against papers demonstrating delivery, the SBLC, Standby Letter of Credit may allow a beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond. Banks deal only in documents and do not involve themselves in the commitments and contracts between the two parties directly. The concern of the issuing bank is the terms and conditions of the letter of credit.

The SBLC is classified as a letter of credit, also called documentary letter of credit. It is a term widely used to secure payments in national and international trade. The document is issued by a financial institution, at the request of the buyer. The buyer usually provides instructions for preparing the document. When redeemed, the Standby Letter compensates the beneficiary. Additionally, a Standby Letter of Credit can be used in land development. The companies to a letter of credit are usually a beneficiary who is to obtain the money, the issuing bank of whom the applier is a client, and the advising bank of whom the beneficiary is a client.

A key principle to remember with the Standby Letter of Credit is banks deal only in documents and do not involve themselves in the commitments and contracts between the two parties directly. The concern of the issuing bank is the terms and conditions of the letter of credit itself. The decision to pay by an SBLC is based entirely on whether the documents submitted to the bank appear on their face to comply with the terms of the letter of credit.

The Standby Letter of Credit may allow a beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond. Used by the depository financial institutions in the United States, the standby letter of credit is very much alike in nature to a bank guarantee. Under this context, the main object of writing out such a credit is to secure bank loans. The Standby Letters of Credit are usually cut by the appliers bank and apprised to the beneficiary by a bank in the beneficiary’s country.

There are a variety of formats and delivery methods available for SBLCs – Standby Letter of Credit. These are primarily made available with the setup of domestic and foreign bank accounts or foreign private trust accounts. One can enhance credit profile by joint venturing with the service provider. Cash accounts for the issuance of the Standby Letter of Credit are set up and prepaid for terms of 12 months or longer as needed.

Commercial Letter of Credit: With a traditional letter of credit the beneficiary obtains payment against papers demonstrating delivery. A standard commercial letter of credit is used principally in international trade finance dealings of substantial value, for trades between a provider in one area and a client in another; which usually provides an irrevocable payment bank undertaking. The letter of credit format under a LC can also be used for payment on a transaction.

Documentary Letters of Credit are bank instruments issued from an applicant’s bank on behalf of a beneficiary to help mitigating risks and creating a layer of protection against non-payment. Like a bank guarantee, it aids the beneficiary to have confidence a rated financial institution will ensure payment for service rendered once all terms and conditions contractually are met. Unlike a bank guarantee, the letter of credit, as in the case with a standby letter of credit, the instrument is required as the mechanism by which payment is made; whereas bank guarantees are usually only drafted against or called in the event of default. Since Letters of Credit are negotiable debt instruments, meaning the bond or debt may be passed to another party for collection, the value may also be monetized like the value of a top bank rated & issued bond. This gives the ability to use L/Cs not only for their primary use as methods of payment, but they can also be valued and pledged in terms of loans and debt.

Term can be for one year, or a  month to month account service or 12 months with extensions

SWIFT. These are electronic notices sent from one bank to another. Via Swift one can advise and confirm a financial instrument. SWIFT methods are MT799 Pre Advice,  SWIFT MT760, Blocked Funds, Guarantee of Funds. Seasoned Instruments & Fresh Cut Instruments are advised through SWIFT. The MT799/MT999 Swift’s are FREE FORMAT MESSAGES useful for Proof of Funds, the MT760 Swift is a bank guarantee of value. A SWIFT MT103 is a bank wire. We typically have capability to send SWIFT MT799, MT99 & MT760 on cash and SBLCs or BG’s.

Import Letter of Credit

Any business exporting its goods wants confidence that they will receive payment. Consequently, if you are buying goods from a company overseas, they may ask you for an Import letter of credit. An Import letter of credit is a commitment given by your bank to pay your supplier on your behalf using a credit facility that you have pre-agreed. Payment is only made if your bank receives specified documents about the transaction from your supplier. The Import letter of credit sets out the documents to be provided and the conditions to be met. This means that the goods you buy will be as ordered, and that they will be delivered at the agreed time and place. Your supplier can be equally confident that they will be paid by your bank. Key benefits Safe and effective – letters of credit are normally legally binding and cannot be cancelled unless all parties agree Peace of mind – the exporter must ensure that all goods sent to you are as agreed; if not, they run the risk of non-payment Reduces financial risk – payment is only made if the exporter fulfils the terms of the letter of credit New market penetration – letters of credit play a key role in international trade, allowing you to trade safely in unfamiliar markets Negotiating power – because we, your bank, guarantee payment to the exporter, you may be able to secure a better price for the goods Enhanced credit position – you may be able to access Funding solutions to improve cash flow.

Export Letter of Credit

With export letters of credit you can export goods safe in the knowledge that you will receive payment. This is because Export letters of credit provide a commitment given by the buyer’s bank to you that they will pay on behalf of their client. For a transaction to be successful, shipping documents must be presented according to conditions re-agreed with your buyer. You will need to ask your buyer to set up a letter of credit via their bank. We can help you do this. We can also talk to you about the best terms to be agreed upon between you and your buyer. The terms under which payment will be made are known in advance of shipment: timescales, despatch dates and other arrangements are agreed between buyer and seller and are built  into the Export letter of credit documentation. Further protection Confirmation from your buyer’s bank that it will pay you for your goods on behalf of its client may not be enough for your peace of mind. We can also guarantee payment if your buyers bank defaults, this is known as a confirmed letter of credit. Flexibility Transferable Letters of Credit can enable the exporter to source goods that they are not directly manufacturing, by being able to “transfer” payment (in full or in part) to the manufacturer. Key benefits Safe – Export letters of credit allow you to trade in markets where other types of payment could be risky Flexible – we can personalize your letters of credit to meet your exact business needs Peace of mind – payment will be made according to the terms of the letter of credit Lower production risks – you can be confident that you will be paid for the goods after shipment to the buyer Financial security – provides extra security so you can arrange pre-export financing Improved cash flow – deferred payment letters of credit can frequently be financed with your bank using our Funding solutions to improve cash flow.

CURRENT FORMATS: URDG 758 for Bank Guarantees & ISP 98 for SBLC, ICC 600 is current version of Documentary Letters of Credit.

Corporate Guarantees represent a way to use strong third parties to stand behind your project in the case of short falls or unforeseen circumstances.

Our financial network includes Lenders and proven underwriting sources that have delegated underwriting authority for some of the largest domestic and international banks, investment banks, lenders, correspondents, conduits, unions, insurance companies, hedge funds, pension funds, capital and credit companies, private accredited investors, and private lenders.

Institutions: In addition to public banks, private banks, credit unions, building societies, Forex, Credit Union, Securities Houses and money market accounts.

We work with Top Money Center Banks and financial institutions likeHSBC, Credit Suisse, Deutsche Bank, Commerzbank, Chase Bank, Wells Fargo

Being a financial service provider we have the ability to enhance your position also with top rated bank instruments. Regarding Bank Guarantee instruments for credit enhancement, we also work with Offshore Trusts in London, Switzerland, Singapore, Hong Kong, Panama and Belize.

Equity Partnerships are a way to partner up with strong investors to set the financial foundation which you may needed for deals to get done.

Credit Enhancement. There are a lot of different interpretations of the term Credit Enhancement. It is a method whereby a person or company makes provisions to improve its debt or overall creditworthiness. Thereby the lender or bond holder gains a greater reassurance that the borrower or bond seller will honor the obligation due to a third party guarantee, insurance, or collateral. What Does Credit Enhancement Achieve for you? When accomplished effectively, Credit Enhancement assists to reduce the overall default risk.

The borrower or bond seller gains access to financing options previously not available. This is achieved by adding financial assets such as bank instruments & cash collateral accounts that increases a company’s overall credit rating- often gaining access to lower interest rates & better financing terms. Credit enhancement is established through the provision of cash accounts, set up at top world banks on behalf of the client from which Bank Instruments are issued such as a letter of credit, standby letter of credit, bank guarantee, or other forms of documentary letters of credit. The bank instrument can be used to enhance the client’s credit worthiness for primary or secondary collateral, security guarantee of payment, or as a proof of funds to show financial capability. Issuance of Bank debt instruments Bank Debt Instruments for Credit & Collateral Enhancement. Such instruments are issued by International Banks, Offshore Banks, or Offshore Trust, or Offshore banks in Europe, the Middle East, China, Singapore or Hong Kong. We arrange Credit Enhancement by leasing or borrowing funds from asset holders by loan agreement. We access leasing of bank instruments and lease of proof of funds, cash accounts arranged from top bank money centers in the USA, Europe, and Asia.

There are a variety of ways enhancement is accomplished. Cash accounts can be set up at top world banks on behalf of the client from which Bank Instruments are issued such as a letter of credit, standby letter of credit, bank guarantee, or other forms of documentary letters. The bank instrument can be used to enhance the client’s credit worthiness for primary or secondary collateral, security guarantee of payment, or as a proof of funds to show financial capability & readiness.

Escrow Services are independent law firms or specialized companies that agree to hold and protect funds and follow contract instructions

 

Disclaimer & Terms of Service

© 2013 SELECTIVE FINANCIAL SERVICES

   
 

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