Latest news with #URDG758
Daily Tribune
02-06-2025
- Business
- Daily Tribune
Forfaiting a Lucrative option
Forfaiting started in the middle of last Century in Europe and it is taking shape all over the globe to promote trade finance and boost relationship between exporters and importers. In this context, the ICC Rules for Forfaiting (URF 800), aimed to create a standard set of rules to be applied within the forfaiting market worldwide, moreover, the United Nations Commission on International Trade Law (UNICITRAL) endorsed (URF 800). Needless to say, this is good work for ICC, as this rule and the other rules of UCP 600, URDG 758, etc., show the ICC commitment to promote international trade. Forfaiting is a method of trade finance that allows exporters to obtain cash by selling their medium and long-term foreign accounts receivable at a discount on 'without recourse' basis. Forfaiting can be undertaken by banks or finance firms that perform non-recourse export financing through the purchase of trade receivables. 'Without recourse' or 'non-recourse' means accepting the risk of non-payment. Forfaiting eliminates risk of non-payment once the goods have been delivered to the foreign buyer, in accordance with the agreed sale terms. Advantages of forfaiting include, inter alia, elimination of all risk to the exporter with full financing of contract value, exporters can offer medium and long-term financing in markets where the credit risk would otherwise be high, forfaiting works with bills of exchange, promissory notes, or a letter of credit, foreign buyers provide bank guarantee, letter of guarantee or LCs and financing can be arranged on a one-shot basis at fixed or floating interest rate. Once forfaiter commits to the deal and sets the discount rate, the exporter can incorporate the discount into the selling price. The exporter then accepts a commitment issued by the forfaiter, signs the contract with the importer, and obtains, if required, a guarantee from the bank of the importer that provides the documents required to complete the forfaiting. The exporter delivers the goods to the importer and delivers the documents to the forfaiter who verifies them and pays as agreed in the deal. Since this payment is without recourse, the exporter has no further interest in the financial aspects of the transaction and it is the forfaiter who must collect the future payments due from the importer. The cost of forfaiting to the exporter is determined by the agreed rate of discount for the tenor of the receivables and a margin reflecting the risk being sold. In addition, there are certain costs that are borne by the importer that the exporter should also take into consideration. The degree of risk varies based on the importing country, the length of the loan, the currency of the transaction, and the repayment structure. The higher the risk, the higher the margin and therefore the discount rate. However, forfaiting can be more cost-effective than traditional trade finance tools because of many attractive benefits it offers to the exporter. We believe, it is a beneficial advisable tool to interested parties to promote trade finance.
Time Business News
06-05-2025
- Business
- Time Business News
Maus Coex Capital Expands Global Financing Access Through SBLC Leasing and Monetization Programs
VANCOUVER, B.C. – As global businesses face increasing challenges accessing traditional credit facilities, Maus Coex Capital is helping clients unlock liquidity through a powerful financial tool: the Standby Letter of Credit (SBLC). In a newly launched initiative, Maus Coex Capital offers end-to-end SBLC leasing and monetization services, enabling businesses to access critical capital through structured, compliant, and internationally recognized instruments. 'In today's economic environment, conventional financing isn't always feasible,' said Rohan Ellis, Senior Partner at Maus Coex Capital. 'Leased SBLCS allow companies to secure capital and mitigate lender risk without sacrificing equity or operations.' What is an SBLC and How Does It Work? A Standby Letter of Credit (SBLC) is a bank-issued financial instrument that guarantees payment to a beneficiary if the applicant (client) fails to meet contractual obligations. Governed by the ICC Uniform Rules for Demand Guarantees (URDG 758), SBLCS are recognized globally and commonly used in cross-border trade and project finance. Unlike direct loans, SBLCs do not transfer funds upfront but serve as a guarantee of payment. Thus, the holder can obtain credit from financial institutions by presenting the SBLC as collateral. Leasing an SBLC: A Strategic Alternative to Traditional Credit Rather than issuing SBLCS directly from their bank lines, many companies opt to lease SBLCS from institutional providers. This allows them to present a high-value instrument as collateral, without tying up their cash. The SBLC lease process includes: Initial Consultation – Maus Coex assesses business objectives, credit needs, and feasibility. Provider Selection – Maus Coex matches clients with Tier 1 SBLC providers with proven reputations. Negotiating the Collateral Transfer Agreement (CTA): This agreement outlines the face value, lease period, fees, and terms. SWIFT Delivery of the SBLC – The provider's bank transmits the SBLC securely to the client's bank. Monetization – The client's bank or third-party lender offers a loan or line of credit based on the SBLC. 'The SBLC leasing process offers businesses capital access while maintaining liquidity and control,' Ellis noted. The Role of Maus Coex Capital: Trusted Intermediary and Structuring Agent Maus Coex Capital is a global facilitator, ensuring each transaction is transparent, compliant, and bank-verified. Their services include: SBLC Provider Vetting – Only top-rated issuers are included in Maus Coex's network. – Only top-rated issuers are included in Maus Coex's network. Legal Structuring – All CTAS and delivery instructions are legally reviewed for each jurisdiction. – All CTAS and delivery instructions are legally reviewed for each jurisdiction. SWIFT Verification – SWIFT MT760 confirmations ensure the SBLC has been issued and received correctly. – SWIFT MT760 confirmations ensure the SBLC has been issued and received correctly. Regulatory Compliance – All instruments conform to URDG 758 and are reviewed for banking acceptance. Case Study 1: Infrastructure Developer Leases SBLC to Fund Expansion Client: EuroRail Logistics (Austria) Challenge: EuroRail required €25 million in capital to upgrade freight infrastructure but lacked traditional collateral. Solution: Maus Coex arranged to lease an SBLC from a Swiss provider, which a private lender in Luxembourg then monetized. Outcome: EuroRail secured the loan within 21 business days and avoided equity dilution. 'The SBLC from Maus Coex allowed us to unlock capital we otherwise couldn't access,' said EuroRail CFO Anneliese Mayer. 'It kept our expansion plans on schedule.' Monetizing the SBLC: Turning Guarantees into Working Capital Once delivered, the SBLC can be monetized, meaning it is used as collateral for a loan, typically at 70–90% of its face value. Key Benefits of SBLC Monetization: Fast access to capital (typically 10–21 days) (typically 10–21 days) No need for traditional credit checks Funds can be used for trade, real estate, infrastructure, or M&A If a bank declines to monetize an SBLC, Maus Coex offers access to third-party lenders, particularly in Switzerland, the UAE, and Singapore, specializing in collateral-backed credit. Case Study 2: Tech Startup Secures $5M in Growth Capital via SBLC Client: DataVault Systems (California) Challenge: The company required growth funding but had no tangible assets for bank loans. Solution: Maus Coex facilitated a $6M SBLC lease. DataVault monetized 85% of its face value within three weeks via a London-based private lender. Outcome: The startup launched its following product line without selling equity. 'We didn't have to dilute ownership or wait on VCS,' said CEO Ryan Cortez. 'Maus Coex delivered a strategic financing solution.' Why Choose Maus Coex Capital for SBLC Leasing and Monetization? ✅ Global Reach – Clients in 40+ countries ✅ Tier 1 Providers – All SBLCS issued via AAA-rated banking partners ✅ Legal Oversight – In-house legal team reviews all agreements ✅ Secure SWIFT Protocols – All instruments are verified using industry-standard MT760 ✅ Third-Party Monetization Options – Access to alternative lenders globally 'Maus Coex is more than a facilitator—we are your capital partner,' said Ellis. 'We guide our clients from initial consultation through funding.' Understanding the Risks and Best Practices Maus Coex emphasizes transparency and education in the SBLC leasing market. Clients are advised to: Avoid providers who offer non-verifiable or 'non-deliverable' SBLCS Confirm provider bank credentials in advance Ensure the SBLC includes a first demand clause to maximize monetization potential to maximize monetization potential Work only with licensed intermediaries who operate under international financial regulations 'Maus Coex rejects over 60% of provider applications because they don't meet our standards,' said Ellis. 'Our client's security comes first.' Legal & Regulatory Safeguards: URDG 758 and SWIFT Protocols All Maus Coex-facilitated SBLCS are governed under: URDG 758 – ICC's globally recognized standard for demand guarantees – ICC's globally recognized standard for demand guarantees SWIFT MT760 – Secure interbank messaging standard used to issue financial instruments The firm's legal team ensures every SBLC is enforceable in courts across Europe, Asia, and North America. Contact Maus Coex Capital to Begin the Process Maus Coex Capital offers free consultations for companies seeking SBLC funding solutions. The process begins with a confidential discovery session, where financial needs are assessed, and potential providers are shortlisted. Whether you're financing a $2 million construction deal or securing $100 million in trade credit, Maus Coex Capital has the network, knowledge, and legal infrastructure to get you funded. About Maus Coex Capital Maus Coex Capital is a global financial advisory firm specializing in alternative financing solutions, including SBLC leasing, private credit facilities, surety structuring, and cross-border project funding. With offices in Vancouver, London, Dubai, and Singapore, Maus Coex empowers clients with expert guidance, regulatory compliance, and global reach. For media inquiries, consultations, or partnership opportunities, please contact: Maus Coex Capital📍 1055 W Georgia St, Vancouver, BC V6E 3p3📞 +52 55 8526 1738📧 info@ 🌐
