There are different types of financial instruments that are eligible to join a Private Placement Program, the very first rule we remind you is that the investor must OWN his financial instrument.
A standby letter of credit is a guarantee of payment by a bank on behalf of their client. It is a loan of last resort in which the bank fulfills payment obligations by the end of the contract if their client cannot.
The standby letter of credit is never meant to be used, but prevents contracts from going unfulfilled in the event your company closes down, declares bankruptcy, or is unable to pay for goods or services provided. Standby letters of credit help prove a business’ credit quality and repayment abilities.
How to use a SBLC in Private Placement Program? clic here
A bank guarantee is a promise from a bank or other lending institution that if a particular borrower defaults on a loan, the bank will cover the loss. Note that a bank guarantee is not the same as a letter of credit.
How to use a BG in Private Placement Program? clic here
Safe Keeping Receipt or SKR, or Safekeeping, is where an asset owner elects to place that asset in the care of an Agent, usually a Bank or a Financial Institution and receives an acknowledgement from the Bank as to their “Safekeeping” of that asset. The asset owner may elect to have such an acknowledgement sent to a third party.
How to use a SKR in Private Placement Program? clic here