Bridge Buy/Sell Funding program: this service is provided for Clients who don’t have enough funds to purchase a Fresh Cut/Seasoned/Discounted Bank Papers, However, the Client has an EXIT Buyer/Monetizer/Discounter.
In general, between banking regulatory processes, compliance with stringent conditions: anti-money laundering(AML), compliance, Basel 3 requirements and more.
Contracted to carry out the transfer of the financial instrument is made only through electronic systems for secure banking system (Swift). Any attempt to contract a different way than is invalid and turn “red lights”. In addition, the law requires reporting to the proper authorities.
After funding the purchase of the Bank Papers, as part of the transaction will provide a Custody service for 30 days to hold the Bank Papers on behalf of the Client.
During this 30 days term, the client is given an “option to sell” the said Bank Paper, in the event that the client is not able to sell or Exit, then the Funder reserves the exclusive right to take over the sale of the Bank Paper.
Upon completion of the resale of the Bank Paper by the Funder, Five Percent (5%) shall be paid to the client, as compensation for their involvement in the transaction.
In order to get an offer to Bridge Buy/Sell Funding Instruments, the following documents need to be submitted for review and due diligence:
Application/Letter of Request.
KYC on Corporations letterhead.
Verbiage/Specimen of Instrument/Securities.
RWA – ATV of the Instrument/Securities.
Once the full package submitted, the M.G Capital Compliance to review, within about five business days, on green lite and decided to continue the process, the client accepts the offer of funding, the procedure, and schedules for performance.
The funder responds with a delivery of a non-binding Term Sheet.
After the client reviewed the Term Sheet and shared with his bank, which must be signed and if possible stamped as “Acknowledgment” by the bank.
The process is bank to bank basis.
Both Buy/Sell settlements as Delivery Versus Payment Basis (DVP).
*** In heaven forbid which were allegedly forging documents or attempt of fraud, the company is obligated under law to notify the authorities, which could result in a criminal investigation as well as entry to the blacklist.