Financial Instruments

BG

Leased Bank Guarantee (BG) is issued by World Top 100 Banks, we use the Bank SWIFT Network to have clients Leased Bank Guarantee (BG) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760. We operate a reliable, efficient delivery and authentication process that includes two stages of Independent Verification on Two Respected Financial Transaction Networks:

Euroclear - We lodge the Leased Bank Guarantee (BG) in your name on Euroclear and provide you with all the Euroclear pages confirming the BG is live and ready to deliver to you. You can then independently check and verify the BG is on Euroclear in your name and approve the BG for Swift delivery to your bank.

Swift.com - After you have verified the BG on Euroclear, we then commence delivery of the SWIFT MT799 followed by SWIFT MT760 to your bank coordinates.

Client Deposits are 100% Protected with 3 Levels of Protection

We value our relationships with our clients so much that ALL CLIENT DEPOSITS receive 3 Tiers of Protection which are:

1/ Staged Payment of the BG Deposit in 3 Payments as the BG is Delivered.

1st Payment due (approx. 15% of BG Deposit) after all Parties Sign BG Delivery Agreement

2nd Payment due (approx. 25%of BG Deposit) after BG is on Euroclear and Verified by the Buyer

3rd Payment due (approx. 60% of BG Deposit) after Swift MT799 is sent and is Verified as by the Receiving Bank.

At Saderat we are in collaboration with several providers to ensure we give you an excellent service to your financial concern.

This Staged Payment Structure provides Security, Confidence and Minimizes Client Risk. It allows clients to commence the delivery of a Leased Bank Guarantee (BG) with confidence knowing they receive verified evidence of a real, genuine, authentic transaction prior to them making the 2nd and 3rd payments of the Bank Guarantee (BG) Deposit.

2/ Two Percent (2%) Non Performance Penalty in the Bank Guarantee (BG) Delivery Agreement.

3/ Deposit Refund Protection Program (Optional).

The Deposit Refund Protection Program which is optional Guarantees Clients Deposits are 100% Safe AND ensures clients Deposits are paid back in FULL to their bank account BEFORE we Deliver the Leased Bank Guarantee (BG) to the clients nominated Bank coordinates. This is a unique Program that is only available to clients of Secure Platform Funding! We specially structured this program to provide clients with the safety, security and peace of mind they deserve when Purchasing a Leased Bank Guarantee (BG) from us. We strongly recommend ALL clients complete the Deposit Refund Protection Program prior to purchasing a Leased Bank Guarantee (BG).

SBLC

An SBLC is the acronym for Stand by Letter of credit. It is one of the most trusted form of payment for your suppliers. It guarantees your suppliers or sellers to proceed in shipping your goods while the buyer is secure on delivery. This is an instrument which can be purchased or leased for the purpose of your trade. It can be used in enhancing your credit line with your bank or companies, or increased activity your balance sheet, you may want to lease a Certificate of Debt, in the form of a Bank Guarantee, MTN, or Bond. The Instruments are usually issued by major world banks and can allow you to enhance or secure your credit or carry out your commercial operations. you have the option of leasing or outright purchase. With the SBLC that we provide, we are sure of its monetization without hassles if your company is in dire need of a working capital or to purchase machineries. This is one of the highest and most secure payment guarantees available … About SBLC Providers When you are completing transactions, particularly when banks are involved, it is important to protect all parties. With standby letters of credit, or SBLC, you can create assurance that invoices or loans will be paid as promised, even if the borrower defaults on the loan or invoice. Obtaining SBLC financing is the best way to create a guarantee of funds, even if the person who is promising to pay doesn’t come through with the appropriate funds.

LC (LETTERS OF CREDIT)

Letters of Credit (Letter of Credit) are a powerful tool of international trade. There are two types of Letters of Credits the Documentary Letter of Credit used in trade finance and the Standby Letter of Credit (SB Letter of Credit) which in essence is a bank guaranty.  Letter of Credits are unique financial instruments that connect the movement of physical goods that are being bought and sold with the funding of these goods as they move through the channels of trade. Over the years, certain terms and modality have been established which are reflected through specific Incoterms through which the Buyer, Seller and the transporting company know when the responsibility for the goods move from one party to another and when title to the underlying goods transfers from one party to another. Generally, a Letter of Credit will be irrevocable and at sight. This means that the Letter of Credit issuing bank is irrevocably committing to paying the Seller once the seller meets the terms of the Letter of Credit. ‘At Sight” means that when the Letter of Credit issuing bank receives the documents from the Seller and ‘sees’ them then the issuing bank is obligated to pay if all the Letter of Credit documents are in order.

DLC (Documentary letter of credit)

A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. It is one of oldest form of payment in international transaction.

Foreign exporters that deal with unfamiliar companies thousands of miles away are naturally uncomfortable investing money to produce goods and ship them without any assurance of payment. Without a letter of credit, exporters generally ask for substantial deposits or other payment guarantees. Letters of credit allow buyers to avoid these undesirable alternatives.

Likewise, importers dealing with foreign suppliers don’t want to pay upfront fees.

For both buyers and sellers in a given transaction, letters of credit represent a reasonable compromise that protects both sides’ interests by assuring exporters that they will get paid once they produce and ship the goods according to certain documentary requirements that in turn protect importers’ interests. This is akin to an escrow arrangement, ensuring exporters that the goods won’t be released until they get paid and providing buyers with a guarantee that they will get the goods if the exporter is paid

IMPORTANT:

A Documentary Letter of Credit (DLC) normally forms of payment security or payment guarantee between a Buyer and Seller of Goods. Therefore, the Documentary Letter of Credit (DLC) we provide clients are NOT MONETIZABLE and are NOT TRANSFERABLE like a Bank Guarantee (BG) would be. A Documentary Letter of Credit (DLC) is a specialist payment mechanism that is used for a specific buy and sell goods transaction, a DLC cannot be monetized by a 3rd party.

Documentary Letter of Credit (DLC) Benefits

A letter of credit minimizes risk, maximizes control, and optimizes profits associated with international trade by making transactions simpler, smoother and safer for all sides.

Buyer Benefits

You may not have the necessary collateral requirements or relationship with the bank to get a letter of credit—but we do.

You don’t have to leave deposits with your suppliers, since your letter of credit will be opened for the full amount of the transaction—so your cash is not tied up or at risk while your supplier can often borrow against a letter of credit.

You may significantly increase your ability to do business with companies outside the U.S. by bolstering your financial position with your suppliers.

You can build safeguards into the letter of credit, including inspection of the goods and quality control, and set production and delivery times. This gives you more quality control over your goods.

Seller Benefits

Payment is assured as long as you comply with the terms and conditions of the letter of credit.

The credit risk is transferred from the buyer to the issuing bank, which is obligated to pay even if the buyer goes bankrupt.

You have easier access to financing and are able to transfer all or part of the letter of credit to another party, e.g., to purchase raw materials.

Collection time is minimized, as the letter of credit accelerates payment of receivables, and foreign exchange risk is eliminated when it is issued in the currency of your country.

Project Financing

We are aware that for your business or project needs financing. Corporations, firms, companies, large and small scale all requires financing at every point of their existence. So we know how important finance is relevant to your growth which is why we have structured our finance objective into various forms; Capital project such as infrastructural loan e.g Railway and Bridge construction financing, Import and export trade finance including working capital. The success of your business is our concern as we are able to provide adequate study of your project, the best implementation plan and actual resources that you may require. 

At Saderat We just don’t finance, but we ensure the success of your project.