Why the deposit is required ?

Saturday, February 13, 2021 11:17 AM By MG
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I do not want to pay Upfront Deposit Fees


The Sad Reality is our industry is full of people that believe the fairy tale that SBLCs and BGs can be obtained with NO MONEY UPFRONT. The fact is they can't! They never have been able to be purchased for free and they never will be! ALL Banks especially World Top 50 banks charge fees to create and deliver the SBLC / BG to the Client. Banks don’t work for FREE and they won’t deliver assets worth millions of dollars to a client account for FREE and then hope the Client will pay them later!


4 Reasons the Deposit is Required:


1/ World Top 50 Banks will NOT issue a SBLC / BG unless they have an assurance that when they complete delivery of the SBLC to the Clients Bank that they will be promptly paid for creating and delivering the SBLC or BG.

                                                                                                                                                                                                

2/ ALMOST ALL banks now require Clients to make a good faith payment at the start of a SBLC / BG transaction. Too many Banks have been burned with failed SBLC / BG transactions by clients who have refused to show any capacity to be able to:

                                                                                                                                                                                                

a) Either make a good faith payment, or 

b) Settle a legitimate SBLC / BG transaction.

                                                                                                                                                                                                

The high rate of failed SBLC/ BG transactions from clients who have not invested any money in the settlement of their own SBLC / BG transactions has led Most Banks and Financial Instrument Providers to now require good faith payments BEFORE a SBLC / BG is Issued by a bank.

                                                                                                                                                                                                

3/ If a client could get a $70 Million- or $200 Million-Dollar Standby Letter of Credit or Bank Guarantee issued without contributing a single dollar, every homeless person on the planet would be doing it! There has to be a common-sense barrier to prohibit that sort of foolishness and misuse. Obtaining a SBLC / BG without providing any kind of Deposit is a Fairy Tale that has never existed. 

                                                                                                                                                                                                

4/ There has been a high level of fraud with Proof of Funds and Bank Statements. Our view is if a client cannot transfer the required Deposit for a Leased SBLC or BG Purchase to an Independent Escrow (after all program legal documents are signed by all parties) when they “claim” to have funds to buy a $100 Million Dollar Standby Letter of Credit or Bank Guarantee, then the client probably is NOT            real and MG Capital Group Inc. shouldn’t be doing business with them.


IMPORTANT: If you want to complete a genuine, real, legitimate SBLC or BG transaction you have to lodge a Deposit fee with our Independent Escrow who will act in your best interests and protect your funds completely. 

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