Financial Assets Used in Credit Enhancement

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Bank Guarantee

A bank guarantee can mitigate these risks and function as a safeguard for both parties of a transaction, providing insurance in the event that one cannot carry out the conditions established under a contract. With 100% cash-backed BG’s and relationships with only top world banks, Balboa Trade can provide consultation to assist you in acquiring your next bank guarantee.

SWIFT MT760

An account with the SWIFT MT760 capability allows bank-to-bank SWIFT electronic verification of the account, and will include a blocked funds provision. There is no other bank guarantee provision available in the SWIFT instructions. There is a $1 million minimum account size for this SWIFT wire communication. Additional costs apply.

SWIFT MT799

An account with the SWIFT MT799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in compliance with the SWIFT Category 7 “Treasury Markets & Syndication” message types. Often there is a misconception that a particular circumstance requires a SWIFT MT760 message, when in fact, the SWIFT MT799 format provides the required bank confirmation for the application. There is a $1 million minimum account size for a SWIFT MT799, and additional costs apply

SWIFT MT999

An account with the SWIFT MT999 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in the account, with no further comment. This SWIFT format is an appropriate message for a simple Proof of Funds communication and it is part of the Common Group of SWIFT formats providing a General Free Format for SWIFT messaging. There is a $1 million minimum account size for a SWIFT MT999, and additional costs apply.

Stand-by Letter of Credit

A Standby Letter of Credit (SBLC) is a painless form of asset enhancement, effectively increasing your investment potential. Whether conducting business domestically or internationally, An SBLC can support your transactions in a myriad of ways, allowing your company to reach its investment project goals simply and securely.

We have an extensive experience in assisting and issuing Standby Letters of Credit (SBLC). Our representatives are greatly skilled in providing SBLC consultation and can tailor this versatile financial instrument to fit your company’s current funding needs.

These types of Bank Instruments can be issued to individuals, corporations, trust, pension funds, endowments, non profit organizations, or to any payable entity. Letters of credit accomplish their purpose by substituting the credit of the bank for that of the customer, for the purpose of facilitating trade. There are basically two types: commercial and standby. The commercial letter of credit is the primary payment mechanism for a transaction, whereas the standby letter of credit is a secondary payment mechanism.

• Help maintain investment plans and optimize cash flow by freeing up company funds which might otherwise be lucked up as deposits- Support the payment of financial obligations and/or agreements

• Ease the establishment of new business relationships

• Maintain capital for company business needs

• Expedite trade and transactions both domestically and internationally

• Mitigate common international trading risks

• Reduce costs; the SBLC is typically less costly than other modes of guarantee and are faster and simpler