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As the leader of a private company, you need to make sound financial decisions that will not only benefit the business now, but also in the long term. You may be facing the challenges of accessing financing, trying to determine the value of your business to communicate to stakeholders, or considering selling your business or buying another business. Access to capital and a strong financial foothold is essential for the success of your company. Whether you are looking for financing from the bank or through alternative methods, there are a number of options available to choose from. We can advise you on the different sources of capital, assist you in accessing financing, manage your risk and compliance and help you evaluate ways to increase your liquidity. We work with clients to articulate their goals and then create an integrated plan to achieve those goals, no matter what phase of the wealth cycle they are currently in. We help firms worldwide define, build, and maintain winning strategies. Our network of strategists works with banks, insurers, asset managers and payments companies to help define, build and maintain winning business portfolios, align actions with long-term objectives, and balance risks.

Our involvement with a client begins from concept and ends with implementation. In doing so the company has the ability to deliver an efficient investment management approach to private, corporate and institutional customers. We continue to look for opportunities where we can use our insight into the growth drivers of the underlying business. We believe that this is a more robust source of returns, over the business cycle, than a sole reliance on financial leverage and we invest with the primary intention of creating a measurable social impact. The corporate finance department of Paywot Co Limited consists of experienced and credentialed financial experts that strive to offer the highest quality of services that are tailored for the client’s needs.

We are experts in the Monetization of Bank Guarantees (BG) and Standby Letters of Credit (SBLC) and other Financial Instruments. We have direct relationships with proven Issuers and Monetizers who offer a complete range of Non Recourse and Recourse programs. Monetization typically takes 10 days and returns are between 50% and 90% Non Recourse (depending on the BG and SBLC Type)

BGs and SBLCs can be Monetized for:

Cash
Placed into Trade Programs (PPP Private Placement Programs)
or a Hybrid of Immediate Cash and funds in a Trade Program.

BG and SBLCs that can be Monetized include:

Top 25 Bank BG and SBLC
Rated and Unrated banks
Instruments with a Value OVER 5 Million Dollars
BG & SBLC MUST have at least 10 months prior to expiry.

Through existing credit relationships, we are able to accommodate bank obligations such as Guarantees and Standby L/C’s for credit line and monetisation facilities. Offering up to 90% of security value, with interest charges due yearly, we can offer credit allowing facilities up to 96 months.
Fast completion process and interest rates from 3.00% per 12 month period.

Bank Instruments such as Letters of Credit and Bank Guarantees are frequently used but seldom properly understood.
Whilst these instruments are utilised in conventional trading on a day to day basis, they can also be employed in complex financial structures designed to maximise financial positions and bespoke to each individual requirement.
We have a Global network that specializes in Monetization of almost any type of Bank or Financial Instrument worldwide from $10m to $1 Billion Dollars.

NOTE: Qualifying Instruments

The instrument needs to be a Cashed Backed Bank Instrument, such as a BG or SBLC.
The Bank needs to be a World Top 25 Bank with a “A Bank-Rating” or better.
The instrument must be transferable and will need to be transferred to the lender via MT799 or MT760.

Monetize Bank Instruments – SBLC Monetization/BG Monetization

In order to monetize a SBLC (SBLC Monetization) you must be in possession of the instrument and it must be paid for prior to monetizing (OBTAIN a Bank Confirmation from issuer saying they are RWA to issue to Lender for monetization).

– Use Bank Instruments as Loan Security
– Finance Trade Facilities
– Offset Tax and Debt Liabilities
– Free-up Locked (or blocked) Funds
– Create Fixed Returns
– Verification & Due Diligence Services

Complicated financial structures and tax efficient corporate re-structure is not for everyone. Sometimes all we need is a simple business loan without the hassle, head-ache and high interest rates often associated with high street and main-stream bank loans and overdrafts.

Aside from being expert at creating dynamic and efficient financial facilities and bespoke corporate financing, we are also expert at providing facilities for straight-forward, simple business loans.

From time to time it is necessary for any business to locate and secure additional capital from outside their usual network such as their bankers and shareholders. There are a myriad of reasons why businesses need to attract immediate and simple business loans without the thrills and spills of complex high-finance.

The majority of these reasons relate to growing the business in some way. Other reasons may be for fixing temporary cash-flow problems or pulling the business through a full patch.

Loans may be granted as secured debt, utilising existing assets (or values held within the assets) as security.
Loans may be secured over stocks and share holdings of the business.
Additional Funds may be injected for a fixed term as Equity with Equity Buy-Out Arrangements being made in advance.
Funds can be raised through the offering of secured debentures.
Each facility we structure is of course bespoke to our Clients’ specific requirements. Loans from $1 million upward with maximums dependant on business turnover.

Repayments and Repayment vehicles can also be structured and are also bespoke to the requirements.

If the business is not currently structured to offer conventional security, through various strategies and enhancement facilities, it is also possible to import additional collateral allowing the business to increase its secured borrowings over a term of up to 10 years.

Securitization is the creation of asset backed securities. These are debt securities that are backed by a stream of cash flow. Typical debt securities may include;

Residential & Commercial Mortgages and Real Estate Leases
Consumer Assets such as Personal Loans, Vehicle Hire Purchase and Credit Card Receivables
Commercial Loans
Trade Receivables

The act of Securitization is the taking of the cash-flow or income streams over the period of the obligation and rolling it into a current lump-sum value. It is effectively bringing future income into today’s value for today’s use.

Due to this act of relying on future income, most Securitizations are underwritten or insured.

Assets to be securitised are first sold (or transferred) to a special purpose vehicle company (SPV) in order to isolate them from any claim or repayment obligation of the end borrower. The SPV will then issue Bonds or other debt instruments or obligations. The SPV then uses the funds raised by issuing the debt securities to pay to the ultimate borrower for the assets.

The borrower has raised money without risking assets other than those held by the SPV and it has got a lump sum in return. It has lost some assets or cash flows in return for cash. The debt is also kept off-balance sheet. This is quite reasonable given the limited recourse. Securitization can therefore be seen as a way of selling off a stream of cash flows.

Securitization also has benefits for investors. It widens their choice of available investments. The asset backed securities created by Securitization may also be easier to analyse as investors need only evaluate the cash flows from a small pool of assets, instead of a whole complex business. The assets most often securitised are loans of one kind or another which are usually (when pooled, not individually) a low risk investment.

Securitization is a valuable financial tool to any organisation. It allows the principal to use future income streams as today’s assets. It allows for cheap, non-recourse borrowings off-balance sheet and become economically viable for contracts over a minimum of $4m.

Securitization can also be effectively employed in debt restructuring strategies.

Paywot Co Limited can structure bespoke solutions to achieve the objective. Fast, efficiently and economically. To find out how we can help you raise money contact us in confidence where our experienced partners will be able to answer your questions and offer you the right advice.