Guarantees and Surety Bonds

Every Guarantee/Surety Bond must be carefully examined to determine its legal significance and viability. Guarantees and Surety Bonds By issuing a guarantee/surety bond, the bank or the insurance acts as the guarantor for an obligation owed by the debtor. What these two instruments have in common is the bank’s/insurance’s promise to stand in for the payment of a debt or performance of service should the debtor fail to fulfill his or her contractual obligations. With this promise, the bank/insurance undertakes to pay a maximum specified amount when the conditions of the guarantee/surety bond are met. Difference between a Guarantee and a Surety Bond Guarantee A guarantee is a distinct promise to pay and is not dependent on the principal obligation. The guarantor (the bank) may not raise any objections or defenses based on the underlying transaction. This means the guarantor pays upon the first written demand (claim) on the part of the beneficiary, i.e. on the presentation of the confirmation specified in the guarantee text...
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Private Debt Funds, Even wealthy employees can be Investors

American and European investors are voting on Private Funds Investments like Hedge Funds, Private Equity, Venture capital (VC) fund, and today more than ever in Debt Companies. They know why. About two and a half-Trillion US Dollars. This is the estimated volume of American investments in 9,500  Private Funds in the US alone. About three Trillion euros, this is the estimated volume of European investment in about 12,000 Private Funds managed in Europe, mostly in London and Switzerland. The vast majority are wealthy investors. More than five Trillion Euros/USD of "smart" money can not go wrong over time. Private Funds are an exceptional way to invest in the short and long term. because the Private Funds can invest in a variety of sophisticated financial instruments ranging from trading on Stocks and Bonds, etc., Commodities trading, Real Estate, Mergers & Acquisitions, and more. These Instruments require great expertise and are not accessible to the general public. This is how Private Funds can benefit...
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New Project – funding and raising funds

Establishing a new project requires substantial financial expenditure especially large size projects. Given today's reality without an entrepreneur's liquid capital for the possibility of financing, the possibility to establish and revive the project almost zero. Sometimes the bank funding options do not fit the developer profile or to the type of the project or the bank, Senior debt request needed high equity. One of the solutions is to raise funds from investors to leverage developer equity as the bank requested. Many project developers are convinced that their project is excellent with great profitability, in their mind they see how they succeed finding worthy investors, who will be happy and quick to pull out a checkbook. Reality is far from it and different from the far east to the west. The approach to investors mainly for "smart money" owners is a complex issue, requires early preparation. To do this successfully you will need professional business diagnostics and analysis, due diligence, feasibility testing...
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SBLC vs CPN

To obtain Deferred Purchase SBLC the price is 15%, the bank can give credit facility usually between LTV 65% to 85%, an interest rate of about 3%. Example: obtain SBLC in the amount of $100 million, the price is 15% must be paid within 5 days after delivery of the swift MT760. then you need to submit the project/business the credit committee of the bank, in order to get the credit request, in the end only the credit committee will approve the LTV 65% to 85%, assuming you get the maximum credit then the credit will be $ 85 million, most likely the interest rate about 3% on the $ 85 million. (When we deduct 15% payment of the SBLC, the remaining credit will be $ 60 million to use). The Value to use - $ 15 million + $ 2.55 million (interest of 85 million) + bank credit establishment fee + bank advice and receiving a fee of the SBLC, plus...
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The modern financial world you do not know

The financial world is constantly changing and recently undergoes a complete and true transformation. From time to time a new opportunity is born to her, alongside this, financial mechanics create complexity and new challenges, and for this, mind openness is required, knowledge, experience, and continuous learning. Global changes in the global economy and tomorrow's opportunities are growing like mushrooms after the rain. And an experienced professional knows how to pick. The global banking revolution is already here, the major banks in the world begun to internalize the changes and have started laying off thousands of employees worldwide. This represents about 25% to 35% of its total staff. The banking systems become a single service provider that holds all the means, into a narrower and leaner system that sometimes functions as a kind of pipeline for carrying out the transactions. Banks and financial institutions are experiencing news private systems sauce as Crowdfunding, social and P2P loans, FinTech technologies, non-bank loans, private equity, ...
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Equity Investments – Private Equity

Equity Investments actually helps the project entrepreneur to raise funds to obtain leverage senior debt funding, the professional language called Mezzanine funding, to the Mezzanine/Equity investments considered high-risk investment there is no collateral or Second collateral level or plagued the shareholders of the project company. Nevertheless, good chances of getting high yield. Mezzanine/Equity investments were born due to the fact the business/entrepreneurs to raise the necessary equity to obtain adequacy capital/credit facility/project funding from the bank or financial institution senior debt. After the entrepreneur submits his project to the bank or any other financial institution as part of the processing of Risk management and due diligence on the entrepreneur, project, team, etc, by the bank required policy, the entrepreneur equity deposit which usually ranges from 20% to 50%, to obtain adequacy capital for the project, sometimes the bank agrees to take collateral such as land as part of the equity, In this situation, the project may stuck, therefore the entrepreneur must find...
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