Proof of Funds

What is a SBLC?

noreply@blogger.com (Larry Potter) — Tue, 07 Jun 2011 15:20:00 +0000

A SBLC or Standby Letter of Credit is a method of asset enhancement used to increase a client's investment potential.

A Standby Letter of Credit can be used internationally or nationally to support business transactions in numerous ways, which allows businesses to reach their investment project goals swiftly, securely and simply.

A SBLC is just a type of Bank Instrument that is issued to non profit organizations, individuals, trust, endowments, corporations, pension funds or to any entity that is payable.

The SBLC allows a client to accomplish their goals by substituting the credit of the bank for that of the client, for the purpose of facilitating business or trade.

There are basically two types: standby and commercial. The latter is the primary payment mechanism for a transaction, whereas the SBLC is a secondary payment mechanism.

Some of the uses of a Standby Letter of Credit (SBLC) include:

Lessen common international trading risks
Ease the establishment of new business relationships between companies and individuals
Optimize cash flow by freeing up company capital which might otherwise be locked up as deposits
Maintain capital for company business expenses
Expedite trade and transactions both domestically and internationally
Support the payment of financial agreement and/or obligations
Help maintain investment plans
Since the SBLC is normally less costly than other modes of guarantee and are simpler and faster, it reduces expenses

Normally, these instruments are issued from HSBC London, Barclays bank and DEUTSCHE BANK London and Germany.

Facts About SBLC, POF and BG Services and Escrow

noreply@blogger.com (Larry Potter) — Tue, 24 May 2011 21:26:00 +0000

If a provider requires an escrow, to my understanding, it is not an advance payment because funds in escrow does not get released until the instrument has been verified and confirmed by receiving bank.

Who Needs A Proof Of Funds?

noreply@blogger.com (Larry Potter) — Sat, 23 Apr 2011 14:11:00 +0000

A proof of funds letter can help a business get additional financing for technology, real estate, high cost machinery, or construction by showing that there is money to cover the transaction.

The POF indicates legitimacy to all parties involved no matter what type of project.

A Proof of Funds is great when you want to prove that you’ve got the ability to pay outright, but you don’t want to use your own funds.

Most small or mid size companies that are positioned for growth do not have the financial ability to make their future plans happen. That is where an investor group with POF security can be the key to taking a business to the next level.

Keep in mind that this doesn’t mean that a business owner or entrepreneur doesn’t have to come up with their own funding, they do. Any serious business owner will have funds of their own to invest as well as a solid plan to get a return on theirr investment.

What is a Proof of Funds?

noreply@blogger.com (Larry Potter) — Fri, 22 Apr 2011 15:34:00 +0000

A POF (proof of funds) is a document that shows that an individual or some other entity like a corporation or LLC has the ability and money available to use for a particular transaction.

The Proof of Funds normally comes in the form of a bank, custody or security statement. The purpose of the POF is to ensure that the funds required for the transaction are obtainable and legitimate.