MG Capital Group (MGCG) Crypto Consulting team hosts a rare mix of technical expertise, financial literacy as well as a proven track record of success in several industries. These skills and experiences are now applied to the ever-evolving blockchain landscape, allowing us to navigate through traditional barriers of entry with ease. These valuable insights are used to help us assist our clients in reaching all of their goals.

To obtain Deferred Purchase/Acquisitions SBLC the price is 115%, the client pays only 15% within 5 days and the balance 15 days before maturity, so he can utilize the SBLC during the year and renew for another year, the bank can give credit facility usually between LTV 75% – 85%, an interest rate of about 3%.

Example: obtain SBLC in the amount of $100 million, the price is 15% must be paid within 5 days after delivery of the swift MT760. then you need to submit the project/business to the credit committee of the bank, in order to get the credit request, in the end only the credit committee will approve the LTV 75% to 85%, assuming you get the maximum credit then the credit will be $ 85 million, most likely the interest rate about 3% on the $ 85 million. (When we deduct 15% already paid a payment of the SBLC, and receiving bank fees of about 2%, therefore, bank the remaining credit will be about $ 68 million to use.

With about 68M you need a wonderful trade business to create profits first to get to the obligation to pay the 100%.

The Value to use – $ 15 million + $ 2.55 million (interest of 85 million) + bank credit establishment fee + bank advice and receiving a fee of the SBLC, plus commissions between 1% up to 3%.

Obtain CPN program the price is 15%, these are non-bank funds, the bank needs to endorse the principal and interest/fees(15%), the bank fee for endorsement depends on the Client, usually between 0.5% up to 1%. (this one way to do leverage) 

Upon receiving the loan, the interest/fees(15%) as discount + 1% endorsement guarantee for 365 days (one year) renewable +  commission 1% up to 3%. (Most of the banks will take 25% of the loan amount and manage it to back the endorsement guarantee, However, there are situations where the bank will require 50% management, it all depends on the client business and Portfolio, moreover if the client having assets to support the endorsement guarantee. then the client will have more funds to use for his business).

(In this situation the client will have as the cash flow use is the highest).

A significant benefit for the CPN funding program.

When comparing a funding product SBLC vs CPN when paying the same 15% within 5 banking days it is obviously the benefit to the CPN funding program, first, the funds are non-bank therefore no need for a credit committee, second you get first the cash/loan then the bank will endorse it, better then monetize or discount because on monetize you need to send the collateral first, and the punch line is on optimal use of the cash net on both programs is about $ 68 million, however, on SBLC still has to pay back to the bank $ 85 million + interest on $ 85 million, on CPN all include in the transaction and more the bank pays yield on the funds used that 25 % or 50%.

A Guarantee is a distinct promise to pay and is not dependent on the principal obligation. The guarantor (the bank) may not raise any objections or defenses based on the underlying transaction. This means the guarantor pays upon the first written demand (claim) on the part of the beneficiary, i.e. on the presentation of the confirmation specified in the guarantee text and any required documents. The standard wording used by banks in individual cases either complies with the local legal framework or the policies of the International Chamber of Commerce (ICC). Uniform Rules for Demand Guarantees and Bank Guarantees (URDG 758), and Uniform Customs and Practice for Documentary Credits and Standby Letter of Credit (UCP 600). The URDG 758 and UCP 600, Their wording is based on the internationally recognized issued by the ICC.

This service designed for clients who want to funds their projects like export/import business, leverage equity funds, trade companies, Manufacturing companies, and more.  those securities issued to the clients can be obtained by several methods:

Types of Bank Guarantee

* Standby Letter of Credit (SBLC).

* Demand Guarantees (DG).

* Bank Guarantees (BG).

We, MG Capital obtain and issue the instruments from 15 Top Banks.

Obtaining a Licensing of the instruments. This bank instrument is full CASH BACKED as Collateral opened by the Provider for the benefit of the Beneficial(Client) or Monetizer.

*** Fifteen days before the maturity the Client can renew or return the bank paper-free, clean and clear without any lien.

*** if the clients bank don’t agree to issue the RWA/BCL, the client can deposit the fee’s in the Escrow IOLTA account.

Client’s Bank sends swift MT799 RWA to receive the said instrument.  

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Issuing Deferred Purchase/Acquisitions of instruments. This instrument is full CASH BACKED and comes with the Title Owner of the Beneficial(Client).

*** Fifteen days before maturity the client has three options: the first is to purchase the instrument, the second is to renew the instrument (total renews up to 3 years). In the event that the client does not purchase or renew the instrument, the bank endorses and return the bank paper-free, clean and clear without any lien.

In order to get a term sheet of obtaining Bank papers, the following documents need to be submitted for review and due diligence:

1. Application/Letter of Request.
2. KYC on Corporations letterhead.

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 service, the procedure, and schedules for performance.

Procedures Outline:

1. The Provider responds with a delivery of a non-binding Term Sheet.
2. 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.
3. The process is a bank to bank basis (DVP settlement).

*** 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.

In order to get an offer to Fund the Blocked Funds, the following documents need to be submitted for review and due diligence:

Since 2013 the MG Capital Group (MGCG) LTN Team with help of its partners has evaluated and tested over a 100 different LTN Trade and/or Sale Programs (programas letras do tesouro nacional). Most of these programs were not worth the paper upon which they were written. As every bond owner knows, navigating the processes required to complete an LTN transaction is very complex and difficult. Recurring events such as inconsistent guidelines from the Central Bank of Brazil (BCB), untimely downgrading of Brazil's government debt by credit-rating agencies, turmoil in the financial markets related to AML legislation and BASEL III banking requirements have created an environment that required LTN programs to undergo restructuring, often multiple times. And when this is combined with unprofessional behavior from uninformed or less than ethical "online brokers," life in the LTN arena has been challenging.