Leased Bank Guarantee

Bank guarantees can be used as a successful tool to secure the financing of your projects. These are typically 
used in global finance, trade finance, credit enhancement, project finance, and more. While these are successful tools, they can be difficult to secure. It is almost impossible for small businesses to raise cash from investors who need BGs. However, you can rely on a leased BG, which can be found at many different institutions. Most people are unaware that this is even an option. You can access another party’s cash-backed BG for a fee or lease. After the term expires, you can renew it, or it will be returned to the original owner.

The asset owner enters into co-ownership with the potential borrower, or this asset can be transferred in full. This will ensure that there is no problem with account ownership. The leased BG will grant the account holder the same rights during the term. The new owner can debit, pledge, realize, and use this account for security purposes.

You never have to worry about your security with our three levels of protection:

1. A Two Percent (2%) Non-Performance Penalty

• A two percent (2%) damage fee will be charged to a party who fails to perform. The 2% applies in both cases, either when the Provider has sent a corporate invoice which the beneficiary’s bank does not respond to or pay, and/or when the beneficiary’s bank is willing and able to receive the BANK INSTRUMENTS and no BANK INSTRUMENTS are supplied by the Provider Bank through SWIFT MT-760, DTC, Euroclear, or Bloomberg.

2. A Program to Refund Deposits(all our agreements are Bank Endorsed (confirmable) with full bank responsibility as an insurance wrap)

• With our agreement with banks, that bank becomes responsible for the payment when the transaction is completed.
• When a bank confirms an agreement, the bank becomes responsible before our company pays any fees from the customer. We are the only banking instrument brokers in the world that 100% guarantee your initial deposit through bank verification before the customer authorizes any payment.

3. Attorneys' Client Trust Account

Once your agreement has been approved by the compliance department and confirmed by the bank, payment must ONLY AND EXCLUSIVELY be made into a client escrow account held by the law firm. These bank details are provided directly by a PT.BAT INSTRUMEN BANK INTERNATIONAL Officer (CCO) and are included on your invoice. This refund program protects our customers and ensures deposits are completely safe.

Why you should choose our leased bank guarantees

1. Our Program Operates with the Top 100 Banks of the World
2. We offer monetization for our own bank instrument in case clients need this service.
3. Our Bank Guarantees are available in a variety of currencies, such as the USD or Euro.
4. We offer Low Leasing Rates of 8+2 (10% Total) for rated banks or 5+2 (7% Total) for Non-Rated banks.
5. Offer five days to make a full payment after the MT760 arrives at your bank.
6. We include pre-advice about your MT799
7. We protect 100 per cent of your deposit with Bank Endorsement.
8. We do not allow Corporate or Personal Checks.
9. You do not need to show your project documents.
10. We promise that after an Agreement is completed, it will be signed within 72 hours.
11. We deliver the MT760 to your institution.
12. We offer Bloomberg, Euroclear, or DTC delivery to your Bank.
13. We will pay a commission of up to 1.5% to any brokers.
14. We develop your BG specifically for each client.
15. We impose a performance penalty of 2% on every contract.
16. Our banks endorse our deposit guarantee and also ensure payout.

The Beneficiary and provider sign the contract, initiating the memorandum of understanding and the letter of intent. This enters them into a contractual agreement.

1. During an upcoming day of business, the providing bank will endorse the agreement, granting the beneficiary payment for:

* Swift delivery of the MT799 and MT760
* MT760 Cost of Portfolio Reservation
* Verifying the Beneficiary
*Compliance Assessment Coordinated by the Bank

2. The beneficiary, within two (2) international banking days, instructs his Bank to send a swift transmission/portfolio reservation cost of €XXX, XXX by wire transfer to the Provider’s banking coordinates, and emails a copy of the wire transfer receipt to the Provider.

3. Within three (3) banking days after the Provider's Bank has received the above bank swift transmission/portfolio reservation cost, the Provider will instruct his issuing bank to cut the Bank Instruments for the Beneficiary and schedule it for delivery to the Beneficiary's Bank (BPU Securing the leasing fee needs to be confirmed before the MT799.)

4. Within ten (10) banking days Provider sends MT-799 Pre-Advice to the Receiver’s bank asking “Are you ready to receive SWIFT MT760 with Bank Instrument, verify and pay by SWIFT MT103 in five (5) calendar days according to Transaction Code No. _______________?” (Provider shall provide a copy of said MT799 to the Beneficiary by email).
5. Within three (3) banking days thereafter Receiver’s Bank sends an MT799 to Provider’s bank “Yes, Confirmed, we are ready to receive SWIFT MT760 with Bank Instrument, verify and pay by SWIFT MT103 in five (5) calendar days according to Transaction Code No. _______________?” (Beneficiary shall provide a copy of said MT799 to the Provider by email).

6. Within three days, the provider’s institution will send the BG through the SWIFT MT760.

7. When the receiving bank has received the BG, they will confirm this with the other bank and will pay within 5 days 10% (minus the initial deposit paid to the provider), which includes a 2% consultant fee.

8. If the beneficiary does not honour the payments, then the Provider will place a claim on the BG, which causes the receiver’s institution to return the BG through SWIFT MT760. Any payments that have been made by the beneficiary will not be refunded.

9. The provider’s bank has one week from the reception of the payment of the BG to send a hard copy of the BG to the beneficiary’s bank through a courier that is bank-bonded.

10. Any additional tranches will abide by the same procedures and will continue until the funds have been depleted.

Important: Our contracts have a clause that requires the purchaser to return the Bank Guarantee (BG) to the institution that issued the BG no later than 15 days before the first anniversary of the contract. This is required of all Leased Bank Guarantees (BG).

Deposit Requirements for Leased BG’s via EUROCLEAR & BLOOMBERG:

1. Provider and Beneficiary execute, sign, and initiate this Letter of Intent / Memorandum of Understanding, which thereby automatically becomes a full commercial recourse contract agreement.

2. One Banking day, the Provider Bank Endorsed this agreement to guarantee the Beneficiaries’ payment for the:
◦ Swift Transmission (MT799 and MT760)
◦ Portfolio Reservation Cost (MT760)
◦ Beneficiary Verification
◦ Bank Delivery Coordinates Compliance Assessment

3. Beneficiary, within two (2) international banking days, instructs his Bank to send swift transmission/portfolio reservation cost of $XXX,XXX (_________________________) by wire transfer to the Providers provided receiving bank coordinates, and emails a copy of the wire transfer receipt to the Provider.

4. Within three (3) banking days after the Provider's Bank has received the above bank swift transmission/portfolio reservation cost, the Provider will instruct his issuing bank to cut the Bank Instruments for the Beneficiary and schedule its delivery via Euroclear/Bloomberg Screen to the Beneficiary's Bank

5. Within ten (10) banking days, the provider’s institution must email a certified receipt of the Bank Instrument delivery through Euroclear/Bloomberg. (Provider shall provide a copy of said Euroclear/Bloomberg Screen to the Beneficiary by email).

6. Once the receipt is acknowledged, the Beneficiary immediately pays for the leasing fees. (screen block and pay).
7. The Bank Instrument has to be returned no more than 15 days before the contract has been signed for a year.

Required Documents:

1. Fill out Bank Guarantee Application Below

2. When you’ve finished the Bank Guarantee Application and email it to: helpdesk@essextradecapitals.com
Compliance Standard:

1. Accepted Standard: Clients must abide by our standards and accurately fill out the application online.

2. Rejected Standard:
◦ Any provider that is listed on the Forbidden Assets and Financial Instrument List.
◦ Any situation where a client cannot or will not pay the deposit.
Important Information:

1. Please note that the days are banking days and no weekends or holidays are counted.
◦ Banking Days & Holidays Calculator

2. With our bank instrument delivery services, everything is non-negotiable. We will not alter the price or procedures of this service.

3. We don’t issue RWA or BCL letters. This tactic is normally used by clients to shop around for a credit line with the receiving institution with a banking letter confirming there is a bank instrument ready to be issued in their name. We will never allow this to happen under our company name.

4. There is no way to have a FREE Bank Guarantee (BG) or to allow a client to pay for a Bank Guarantee (BG) after the MT760 has been delivered. If this is not paid in full, or paid for under a Bank Payment Undertaking, then no Bank Guarantee (BG) will ever be delivered. Banks will not deliver any Bank Guarantee (BG) until the funds are secure. Banks simply do not work for free or in the hope that after they deliver a Bank Guarantee (BG) , the client may pay them.

5. If the client is leasing via Euroclear and requesting a loan via monetization with the Attorney’s Trustees office of PT.BAT INSTRUMEN BANK INTERNASIONAL, at the same time, please make a note of the following information:

◦ Initial application once submitted, takes 72 hours for compliance approval
◦ You will be given an application for the bank instrument and the recourse or non-recourse loan, once it is submitted, 72 hours for due diligence
◦ After due diligence and application approval, the client will receive a bank-endorsed countersigned agreement, and the client has 3 days to submit payment
◦ It takes 35 days to process the leasing of the bank instrument after receiving payment
◦ It takes 30 days for the monetization process of the bank instrument
◦ A total of 65 working days after payment is received.

6. Please note that sometimes banks ask for a performance bond (insurance wrap or wrap-up insurance) on a bank instrument if the client has some red flags on the due diligence done by the issuing bank to ensure the bank instrument will not be called at maturity for failure to pay the commitment acquired by the client with the bank instrument placed as collateral.

7. The PT.BAT INSTRUMEN BANK INTERNASIONAL does NOT receive any payment from his clients outside the attorney’s client trust account. Therefore , we are NOT RESPONSIBLE for any payment made to any third party, including PT.BAT INSTRUMEN BANK INTERNASIONAL brokers, nor the delegation office.