Proof of Funds, Bank Guarantees, SBLCs

Bank Guarantees, Standby Letters of Credit, Bank Comfort Letters and Ready, Willing and Able Letters are bank instruments that are issued by a financial institution on behalf of a client that are backed by funds or the full faith and credit of the bank or financial institution.  We offer project developers the opportunity to self-finance their project using such bank instruments.

Proof of Funds, Blocked Funds, Verification of Deposit are used to demonstrate that a borrower has the necessary collateral to complete a transaction.  Often, the collateral is provided in the form of a bank statement or tearsheet that shows the account contains the required capital.

OUR PROCESS

Step 1: Client submits proof of funds via a bank statement or tearsheet that demonstrates their ability to cover the cost of issuing the instrument.  If issued from our Investment House, the cost will be 4%-5% of the value of the instrument.  If the instrument must be issued from a top tier bank, i.e., HSBC, Standard Chartered, Credit Suisse, etc., the cost will be 10%-17%.

Step 2: Client agrees to the terms and conditions of our escrow agreement.  We only use escrow accounts because, quite frankly, it is the fastest way to prove the client's financial capability, and that the funds are under their control.  We also offer an optional Escrow Deposit Guarantee Bond issued by a AAA-rated surety company that guarantees the return of the client's escrow deposit.

Step 3: Client submits a completed Application Package—(click here to download our Application Package).

Step 4: We issue both the Escrow Agreement and Contract for the amount and term desired and agreed upon, which client signs and returns.

Step 5: Client wires the agreed-upon amount to the insured/bonded escrow company per the Contract and Escrow Agreement's terms and conditions.  Client shall not wire any funds until he/she is completely satisfied with all terms and conditions of the transaction.

Step 6: We will provide the Account Tear Sheet (in the case of a POF or VOD transaction) or Bank Instrument (in the case of a BG/SBLC) to be verified by the client and his attorneys.

Step 7: After the client’s review, verification and full satisfaction with the Account/Instrument, the hard copy of Account/Instrument will be delivered (if applicable) and the monies in escrow released, thus closing the transaction.

GET STARTED

To get started, download our BG/SBLC/POF Procedures package.  Once complete, email the completed package to James Robinson: (jgrobinson[@]cox.net).

Click here to request more information on BGs, SBLCs, POF, etc, or contact James Robinson at (602) 896-9000.