For young companies and companies experiencing tough financial times, it is not always easy to convince your company bankers to grant finance and loans when they are needed the most. It is common to find highly geared companies in times of recession and often companies have borrowed to the hilt of their assets. Some young companies may not have any borrowings at all; not because they are financially independent, but because banks and lenders will not grant any credit to them.
Bankers and Lenders alike will demand security for any loans or investment. If the company has already used available equity or does not have access to strong security, the options of borrowing are dramatically decreased.
Through Collateral Management and Security Leasing programmers, SEVENTY ONE LTD have experience in providing collateral and security to potential borrowers on short to medium term leases that the borrowers can use to secure further bank borrowings with their conventional bankers or from lending facilities arranged through our partnerships.
By providing Financial Guarantees or Third Party Corporate Guarantees from our company, potential borrowers will find it easier to obtain bank borrowings and attract further investments.
Financial Guarantees, Third Party Guarantees (‘White Knight’ Guarantees) and Collateral Leasing can prove an effective solution to increase borrowings or for financing temporary, short-term gaps and can be efficiently used as bridging finance.
Leased Standby Letter of Credit (SBLC)/BG
A Standby Letter of Credit/Bank Guarantee is used for a variety of projects and can be used in global finance, credit enhancement, project finance, trade finance, and many more. It is an amazing opportunity, but you have to get access to the cash funds of an investor, and this is where we come into place.
While acting as an owner you have the same rights, and can use the bank instrument as collateral, place a lien, or even monetize it. This is all available through your term of the leased SBLC, or upon renewal of the contract.
Our Leased Standby Letter of Credit is an issuance of Barclays UK, HSBC Bank UK and Credit Suisse Switzerland, and delivered through SWIFT. Banks send the SBLC/BG back and forth through SWIFT MT799 and then SWIFT MT760. We can sign the agreement for multiple years – as long your project have and re-new/confirm the bank instrument every year.