Bank Instrument Monetization is a low cost, low-risk method of trade finance that monetizes inactive financial instruments by converting them into cash or cash equivalent by liquidating the instruments.
Monetization is quick, easy, and is accomplishable using a wide range of financial instruments, such as certificates of deposit, corporate bonds, and bank guarantees, to name but a few. See a more complete list of financial instruments we can monetize to the right.
Monetization converts unused assets into cash which can then be used to fund imports, exports, and international trade transactions, so there is very little actual cost and only limited opportunity cost because the assets were disused.
Our financial instrument monetization expertise, when coupled with an impressive list of strategic partners, ideally positions Global Trade Funding to monetize financial instruments anywhere in the world at very attractive pricing.
This is a partial list of the types of financial instruments we can monetize.
- Corporate Bonds
- Municipal Bonds
- Treasury Bonds
- Treasury Bills
- Bearer Bonds
- Certificates of Deposit
- Letters of Credit
- Standby Letter of Credit
- Bank Guaranty
Monetization Terms
We monetize financial instruments through our individual, corporate, private, and institutional lenders, including investment banks, merchant banks, private international banks, trusts, and other lending institutions. In so doing, we never have to rely on brokers as a source of funding. That means we serve our clients directly. It also results in lower cost monetization for imports and more responsive turnaround time for clients. We perform quickly and precisely and offer reasonable terms and pricing for monetization services. Our Standard Monetization Terms are listed below.
Standard Monetization Terms
- Financial Instruments to be monetized can be owned or leased
- We prefer monetization transactions of $100 million or more but we will accept transactions as low as $10 million transaction amount
- Transaction turnaround time normally 10 days or less
- Exceptions can be made to a minimum transaction
- Brokers and intermediaries must have a legally binding agreement
- In brokers and intermediary transactions, contact to be between principals after initial introductions