MG CAPITAL GROUP INC. | PRIVATE FINANCIAL CONSULTING SERVICES - MG CAPITAL BLOG #Private Placement Programs, PPP, PPP mistakesMG CAPITAL GROUP INC. | PRIVATE FINANCIAL CONSULTING SERVICES - MG CAPITAL BLOG #Private Placement Programs, PPP, PPP mistakeshttps://www.mgcapitalgroupinc.com/blogs/tag/private-placement-programs-ppp-ppp-mistakesSun, 14 Dec 2025 01:55:12 -0800http://zoho.com/sites/<![CDATA[RESTRICTED NATIONS LIST]]>https://www.mgcapitalgroupinc.com/blogs/post/RESTRICTED-NATIONS-LISTRESTRICTED NATIONS LIST WE DO NOT ACCEPT PROJECT FINANCING ASSIGNMENTS IN THESE NATIONS.]]>

WE DO NOT ACCEPT PROJECT FINANCING ASSIGNMENTS IN THESE NATIONS

1. Afghanistan 
2. Albania

3. Angola

4. Belarus
5. Bosnia/Herzegovina

6. Central African Republic

7. China (PRC)
8. Cote de Ivoire (aka Ivory Coast)
 9. Cuba

10. Ecuador

11. Egypt

12. Eritrea

13. Ethiopia

14. Guinea‐Bissau

15. Honduras

16. Iraq

17. Kuwait

18. Kyrgyzstan

19. Lebanon

20. Liberia

21. Libya

22. Moldova

23. Namibia

24. Nicaragua

25. Pakistan

26. Papua New  Guinea

27. Russian Federation

28. Somalia

29. Sudan (North and South)

30. Syria

31. Tajikistan

32. Zimbabwe
33. Ukraine

LIST OF RESTRICTED NATIONS


]]>Tue, 08 Mar 2022 11:48:24 -0500<![CDATA[Stocks funding program ]]>https://www.mgcapitalgroupinc.com/blogs/post/Stocks-Funding-ProgramThis service is proved Liquidity Solutions for executives and the ultra-high net worth to wide range of clientele, Executives, Affiliates, Real Estate Investors, Stocks owners, Public Companies, Bonds owners.]]>
Back to Securities funding
Submit your Enquiry

Stocks funding program: This service is proved Liquidity Solutions for executives and the ultra-high net worth to wide range of clientele, Executives, Affiliates, Real Estate Investors, Stocks owners, Public Companies, Bonds owners. 


With an ever-changing financial climate, M.G Capital supplies a Professional service on your side who knows how to utilize your stocks and structure the funding in order to get your funds in a timely manner.


These funding programs are recognized as Repo (Repurchase Agreement), all are on the Primary Market.



​All Major WorldWide Stock exchange is accepted.


The Loan Can be as Non-Recourse Loan or Recourse Loan.

The Loan can be from 1 year up to 5 years.

The amount for funding from 1M up to 500M USD.


Eligible securities we can utilize for the funding programs are:


The settlement Based on Delivery Versus Payment (DVP)/Over The Counter (OTC).

  • Stocks.
  • Penny stocks
  • Corporate Bonds.
  • Medium Terms Notes (MTN).
  • Government Bonds.

​In order to get an funding offer, the following documents need to be submitted for review and due diligence:


  1. Application/Letter of Request. 
  2. KYC/CIS on Corporations letterhead.
  3. ISIN No.



Once the full package submitted, the M.G Capital Compliance to review, within about five to seven business days, on approval and decided to continue the process, the client accepts the offer of funding, the procedure, and schedules for performance.


Procedures Outline:


  1. The funder responds with a delivery of a non-binding Term Sheet.
  2. After the client reviewed the Term Sheet and signed, the funder issue  Repo Agreement.
  3. After the client signed the Repo Agreement, the funder will prepare the coustody,The process basis (DVP/OTC 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.


Back to Securities funding
Submit your Enquiry
]]>Fri, 22 Jan 2021 15:19:23 -0500<![CDATA[HOW TO CORRECTLY APPROACH A TIER 1 TRADE PLATFORM AND AVOID REJECTION]]>https://www.mgcapitalgroupinc.com/blogs/post/how-to-correctly-approach-a-tier-1-trade-platform-and-avoid-rejectionBeing on the receiving end of dozens of submissions that come in on a daily base, of which most come from people who do not understand the proper etiq ]]>
HOW TO CORRECTLY APPROACH A TIER 1 TRADE PLATFORM AND AVOID REJECTION: ARE YOU TRULY READY, WILLING AND ABLE? A MATTER OF THE RIGHT ATTITUDE !!! 
Being on the receiving end of dozens of submissions that come in on a daily base, of which most come from people who do not understand the proper etiquette to successfully be invited into a trade program as many times a capital provider / potential client, has a pre-conceived notion about how to approach a platform and sees trading as a 'right'. They want to do things their way. 


However, those pre-conceived procedures they would like to follow do not fit with the actual way a Tier 1 platform must operate, by banking rules, federal, as well as financial legislation, financial regulatory, Tier 1 bound regulations to begin the process, not even being aware that banks themselves can NOT trade on this level by law! The client/capital provider who insists on this 'tail wagging the dog' is declined even the chance to be considered and not even heard or considered in a 100% secured Tier 1 trade arena. 


Think of it like this; You know that there is a party is being held where the guests are all participating in very lucrative trade programs. They took the correct approach, followed the orders and instructions of the trade platform principals / program director to conform with the financing and trading rules. The people who are inside having a grand time while they multiply their assets and receive proceeds by the platform every trading week renewed; some already for years in ongoing huge project financings. 


Now.., you were not invited to this party but you really would like to attend. If you were going to try to barge in and crash the party, you know you would be automatically resolutely rejected and most likely banned from ever showing up again in future! None of the participants nor the organizers of this particular party are actually really looking forward to any new-comers, all based on the fear that someone new could well spoil the party's pleasant, secured ambiance and existence in time! Pretty severe, isn't it? Yet many times capital providers think they can push their way in, which is hardly the way to get in or to be ever invited at all! 

To make yourself attractive for an invitation to the party, you must 'dress up' by providing the documents that start the invitation process handed to you by the Program Director of the Tier 1 platform. Those are commonly the bank letter (BCL/RWA as is prewritten on purpose!), passport and client information sheet of the client / signatory, a bank tear sheet no older than 5 days, and some other necessary documents. There is also the matter of your personal manner. Are you cooperative? Have you disclosed everything? Will you act like a partner who has a pleasing personality that the platform can work with? No matter how rich you are, remember you are dealing here with the owners of every USD, Euro, or other legal currency on the planet, which will have to approve your Tier 1 trade entry! These here, are just a few things that you as the client/capital provider need to be prepared to do. 


The next step is presenting your documents to the designated Program Director of the platform. This is how you make the request to come to the party. After a brief time making sure that you and the money you want to put up for trade are clean and clear as well as owned by you or your company in full, you have passed now through the first doorway in joining the party. 
The due-diligence is mandated by the Know Your Customer rules! This is also the ONLY correct way for the relationship to begin. You, as the client/capital provider, have to take the first step and introduce yourself. Your documents are your introduction. If all the necessary paperwork is presented and you are cleared to enter the next door, you will be dealing directly with the principal(s) of the platform. This is the point where you must pay close attention to the instructions that the platform will give you. They are required to follow ever-changing rules and requirements to invite you through the last door, which is the entry to the party itself. This, the Trading Contract which binds you and the platform in a legal relationship for the duration of the mutual agreed trade program, it's rules and possible extensions (evergreens) as well as to accelerated trade possibilities (bullet trades) when they occur. 


Because of the enormous amount of fraud and misrepresentation in the market that has resulted in extremely muddy waters for a potential capital provider, each step is taken as rapidly as possible, but very carefully, to make sure that all of the 'i's are dotted and 't's crossed at each step by the authorities, legislators and regulators supervising these Tier 1 trades. 


If you have the right attitude (Willing) , the right presentation of yourself through your documents, and are truly RWA to follow the required laws in order to let you in to the party, then success is likely - assuming you are dealing with someone who truly IS connected to one of the real few performing trade groups there are in this world and that number is very, very small. Beware! Never underestimate what the trading entities know about you and your efforts to get into a trade scenario. Failure to disclose or cooperate in all stages of the DD followed by the intake will disqualify you resulting in a 'NON PERFORMANCE' status. These programs are aimed to finance commercially approved projects or humanitarian natured projects on a 80 / 20 basis, not to solve just a personal financial gain or to generate money to make some individuals richer on the planet! 

THE MINIMUM PROOF OF FUNDS IS 100 MILLION EURO IN CASH (ONLY!) TO BE PROVED TO BE OWNED IN FULL BY A PROSPECTIVE CLIENT! 


This is the minimum entry level for a Tier 1 trade per the G20 meeting in Cannes, France in 2011 that the trade regulators and legislators have decided on. The rest is unimportant as the actual trade will only come per complied and passed DD in full, as well as by Invitation Only, having passed the compliance part in full! Please do not take this process lightly as it goes well beyond the detail you will initially think it will. The process is very strict! Besides; Tier 1 Trades are the ONLY asset enhancement mechanisms where trader as well as the client both are 100% under total supervision by all global financial legislator and regulatory bodies and need their joint approvals. - As such Tier 1 trading is the only safe way of asset trading, where both parties are protected from fraud and any illegal steps at all times! 
Protocol for Entry into a Tier 1 Trade Program. 

There is a certain protocol, or order, in which the client is brought into the program. These are mandated by the trade platform and the government agencies which require them. 





STEP 1. The Client first provides his documentation as requested. This is the "Request For An Invitation" to be considered by the Platform's Program Director. 


• Client Information Sheet and Passport of Account Holder / Signatory 


• Board Resolution (if a corporation) and Authorization to Verify (ATV) 


• Current Bank statement, by BCL / RWA Letter + Latest Tear Sheet 


• Letter of Non Solicitation 


• A Detailed History of how the Funds presented as Proof of Funds were earned. 


The above mentioned documents have a certain lay out, on purpose and ONLY being handed these templates and using them as they were handed to you (to the letter) will provide you the chance to get into a DD process! As these documents are written in a legal language which banks cannot sign if the situation of your Proof of Funds provided is in any which way not coherent to the desired status as it should be. Do NOT take this lightly! 


With every prospects of any type (large or small, personal or company), make sure you know UPFRONT... before you get to the Program Director that you may and/or can NOT vet the Principals on the Platform side because it violates the trade commission's prohibition against solicitation and the banks "know your customer laws" (KYC) in order to engage IN ANY WAY with a client UNTIL they have passed Compliance, signed an agreement with us, have successfully sent funds, and are "in a legal business relation" with the platform. 


The potential new participant needs to know immediately that he can't vet any of us and will get no information until HE performs first in passing compliance.... If he does not trust us and/or they aren't comfortable with this circumstances then don't waste any time at all with them..., cause nothing else will matter....! These rules are deadly serious - written in stone - and, as the gate-keeper of the platform, the Program Director, whose main job is to mitigate potential liabilities to the Platform ONLY can pass you an invitation and guide you in. There is NO NEED for a face to face meeting. Everything is done electronically till DD has been passed. 


STEP 2. After successfully passing through the mandatory compliance Due-Diligences by all involved in a Tier 1 trade, you will receive a Trading Contract which is where you will formally enter the legal relationship officially, along with all the other terms and agreements. 


STEP 3. When the funds have been correctly blocked in your own bank account (CASH ONLY in a Tier1 Trade!!), the principal platform will establish a line of credit by the platforms' own funds which will be used for the trade. So your money is NEVER at risk!! 


STEP 4. In mutual consent or per your request, the platform will also advise how to set up an account for you to receive the proceeds from the trading, after all, You are now an official guest in the party!.. It is not a complicated process. It is made complicated by brokers and naive intermediaries, but the real program is simple when you follow the above steps, in the correct order. After submitting the correct paperwork, you are working now with the Program Director directly, which means you are working with the platform directly. He is here to guide you and assist you, but it is up to you to produce the needed documents that he must have by law in order to start and for you to get invited. 
NEVER FORGET: "Only the small secrets of the Fractional Reserve Trading System needs protection. The big ones are kept secret by public disbelief and / or the crap around it in the published and the spook stories about it!“ 


If you never participated in a trade before – You can NOT know how it is all functioning, as all is different from what 99,9% of the brokers do tell you, as they themselves never produced a single trade participant which made it into a Tier 1 trade! 


.. and we ..? We trade happily ever after in the mean time.., week after week, year after year, with our existing club members, financing the worlds' biggest commercially approved projects and projects of a humanitarian nature, being careful as to whom we will let have access to the exclusive party here.., by INVITATION ONLY.., never forget that, as non solicitation laws prohibit the marketing or soliciting of these programs in any which way !!! 


NB: Again; Tier 1 Trades are the ONLY programs where the trading platform as well as the client both are 100% under total supervision by all global financial legislator and regulatory bodies and need their joint approvals. As such Tier 1 is the only safe way of asset trading, where both parties are protected from fraud and any illegal steps at all times! 


PLEASE NOTE THAT PRIVATE PLACEMENTS ARE SECRET, PRIVATE, TOTAL CONFIDENTIAL AND STRICTLY BY INVITATION ONLY!!THESE PROGRAMS ARE NOT A'RIGHT' YOU CAN INSIST ON ! 
]]>Thu, 15 Oct 2020 16:08:19 -0400<![CDATA[MONETIZE BANK INSTRUMENTS]]>https://www.mgcapitalgroupinc.com/blogs/post/MONETIZE-BANK-INSTRUMENTSMonetize A Bank Instrument – Monetizing Rated And Non Rated SBLC’s Businesses have the option to monetize a bank instrument for credit. This will then allow businesses to have cash equity which will enable business owners to reinvest back into their business.]]>

Monetizing Bank Instrument - Rated or non rated

Businesses have the option to monetize a bank instrument for credit. This will then allow businesses to have cash equity which will enable business owners to reinvest back into their business. There are a number of reasons why people choose to monetize bank instruments. One reason is to have the ability to use cash from the liquidated instrument to buy goods and trade them with minimal risk. Struggling businesses can use them as a way of raising money to invest in the operations.

We work alongside other financial institutions who can issue and monetize bank instruments. Bank instruments can be useful when starting up a business. You can either purchase or lease an SBLC and have the bank instrument cashed in (monetized) to provide capital for your business. As well, you can take it one step further and we can enter the monetized amount into trade to generate further funds. We have service providers who can facilitate in issuance of BG’s/SBLC’s, monetize and last but not least trade the monetized bank instruments. All of our service providers have a proven track record. Using instruments to fulfill your capital requirements can be a less complicated method to meet your capital needs.

How To Monetize Bank Instruments?
There are many types of banking instruments, the most common ones are; Bank Guarantees (BG) and StandBy Letter Of Credit (SBLC). Companies can also use Medium Term Notes (MTN) as a debt instrument. MTN’s were established as an alternative solution to short-term financing in the commercial paper market and long-term borrowing. Although all three are widely used by high net worth investors as a wealth building option. All these different banking instruments can be monetized if the owner wishes to do so.

Monetize A Bank Instrument
If you are looking to monetize an SBLC, you may want to find a monetizer who can give you a decent LTV (loan to value) ratio. LTV’s are assessed by the strength of the security of the instrument and the banks credit worthiness.

Before bank instruments are accepted by monetizers, they will often be checked for their legitimacy. This includes using programs to check documents, knowing exactly where the instrument came from and if the bank can verify where the instrument was issued from them. Wording on the SBLC determines what the instrument can be used for. Just like Providers have their own ways of doing business, so do Monetizers. Monetizers prefer to monetize purchased SBLC’s verified from top 10 banks. Some require you to put the instrument into trade, some may take care of the lease fee deducted from monetized amount (this is rare).

Non Recourse Bank Instruments
If you have a non recourse bank instrument, you may wish to get it monetized. MG Capital Funding are able to assist you, but there will be certain conditions set by monetizers. Some monetizers will require that certain wording is included in the MT760 to enable monetization. Some bank instruments can be monetized but it has to be given to a trader which means the LTV can be fairly low; eg. some instruments can be monetized at 35 % LTV non-recourse.

Monetizing Non Rated Bank Instruments
In general, some monetizers keep away from non-rated bank instruments for the very reason that often these instruments are either fraudulent or are not worth the paper they are written on. Bank instruments such as SBLC’s have to be backed by collateral. That collateral would normally come from a client who holds a bank account within the issuing bank and will use their collateral to back an instrument. Non-rated banks however may not necessarily have the collateral to back the instrument thus deeming the SBLC worthless. Therefore monetizers tend to steer away from such instruments. That said however, there are some specialized service providers who will monetize non-rated bank instruments. Some will only monetize SBLC’s which have been issued by their ‘pre-approved’ network of non-rated banks whom they have pre-vetted to ensure that instruments which are issued from such banks have the collateral and wherewithal to issue the bank instrument. We have access to these very specialized monetizers.

Access Trade Platforms
Trade platforms can be used for many reasons. Some choose to use them to either build wealth or fund a project or business.

Trade Platform Facts
You may have heard about traders working in Banks, Hedge Funds and on Wall Street. There are elite traders you may not know about who work privately which can create such phenomenal returns. It’s not easy getting into such platforms, as the traders are very particular about who they let into the platforms. It is a privilege to get onto these platforms, not a given.

Potential participants will have personal checks and balances done on them before entering such platforms. Checks can include: validity of passports, documents and sometimes a personal face-to-face interview with the trader. Our group deals in clean business only. We might run checks through interpol to make sure there’s no history of money laundering and previous criminal convictions.

Trade Platforms For Businesses
After monetizing an SBLC, you may choose to use the cash to enter a trade platform. It is possible to enter these platforms for:

Project Finance
Working capital/build cash reserves
Investment for growth and expansion
Reduce debt and borrowing costs
Enhances company’s credit status
Make acquisitions
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]]>Wed, 02 Sep 2020 13:13:05 -0400<![CDATA[INTELLIGENT TRADE FINANCE]]>https://www.mgcapitalgroupinc.com/blogs/post/INTELLIGENT-TRADE-FINANCEThe trade finance industry is undergoing a unique moment of transformation. There is a virtuous circle between how the technologies of the fourth industrial revolution will enable trade financing, and how this in turn will power the innovation and adoption of these technologies in “Industry X.0.”]]>

Intelligent Trade Finance- The road ahead

The trade finance industry is undergoing a unique moment of transformation. There is a virtuous circle between how the technologies of the fourth industrial revolution will enable trade financing, and how this in turn will power the innovation and adoption of these technologies in “Industry X.0.” In our last post, we explored ways in which AI, blockchain and the Internet of Things (IoT) will transform how trade finance is done. Here we explore some of the hurdles that banks face on the road to true intelligent trade finance, and provide some practical examples of banks that have overcome these challenges and serve as prime examples of intelligent trade finance in action.

The biggest challenge that banks face on the road to intelligent trade finance is the ability to manage vast and increasing amounts of unstructured data in this exponential environment. Banks, vendors and suppliers are still talking in their own language. There is a need to standardize rules through more uniform digital standards that will pave the way for more frictionless data exchange across stakeholders. Moreover, a willingness to collaborate and share ideas on the data that will have the most value when translated into uniform digital standards is critical.

Meanwhile, banks are increasingly worried about tightening sanction controls, cybersecurity and accurately predicting customer transaction behaviors through more consistent and automated KYC processes and data.

Cross-border data flows are impacted by regional data protection regulations, which impact the fluidity of international trade transactions. Governments and regulators must find ways to come to consensus around how data in their jurisdictions can cross-borders freely so that wider data flows can be compared and analyzed.

Going digital end-to-end in this new world demands that banks look beyond digitizing their own enterprises and develop business models that support digitalization and interoperability across the diverse corporate digital ecosystem. Defining a cost-effective, economically viable model demands true collaborative solution building. There is an urgent need for banks to co-innovate, working with technology vendors to design open interfaces to tackle the challenges and achieve frictionless trade. Once achieved, the benefits are tremendous.

IoT Use Cases and Examples in the Public Domain

  1. Track and trace for perishable goods. National Bank of Dubai (NBD) executed a blockchain trade transaction that tracked a shipment of fruit from India to the Middle East, monitored by sensor-enabled devices. The bank issued a letter of credit to Santander, while Aramex, a logistics firm, shipped the goods. Smart contracts were executed on the distributed ledger, leveraging sensor data to confirm contractual obligations using IBM’s artificial intelligence platform.
  2. Commerzbank – everything-as-a-service. Commerzbank’s prototype for a new “pay-per-use” loan for capital equipment taps into IoT to adjust repayment terms based on usage of the machinery on which the loan was used to finance. The bank says the ability of machines to communicate and post production data and capacity constraints over the internet is creating new business lending models, such as pay-per-use, pay-per-part, and equipment-as-a-service. Commerzbank’s big data and analytics division developed the platform in conjunction with networked machine tool manufacturer Emag and car parts supplier KMB Technologies.
  3. IoT triggered payments. Skuchain has built a blockchain-based platform, EC3 which comprises Popcodes to track the flow of goods with the help of IoT such as QR Codes, bar codes, sensors and RFID tags. Commonwealth Bank of Australia (CBA), Wells Fargo, and their joint customer, Brighann Cotton, were the first to execute a global trade transaction between banks combining blockchain, smart contracts, and IoT. The transaction involved a shipment of cotton from the US to China which was monitored on Skuchain’s system. The trade included a physical supply chain trigger (from IoT) to confirm the geographic location of goods in transit, before releasing the payment.

As the CBA/Wells Fargo example above shows us, there is an opportunity to combine blockchain, smart contracts, and IoT to trigger supply chain finance solutions and streamline overall supply chain management.

Celent’s recent trends report (Top Trends in Corporate Banking 2018-19) supports this: IoT has vast potential for supply chain management. From the supplier to the customer, from components to the finished product, and from the factory to the warehouse, the supply chain is the backbone controlling the flow of processes and data. And the physical and financial supply chains are tightly linked, with the use of letters of credit, pre-shipment finance, invoice factoring, and receivables financing happening along the way.
​
In the future, trade will increasingly be orchestrated on end-to-end, digitalized and blockchain enabled networks. To reap the rewards and capture the potential of intelligent trade services banks are exploring how an open platform that can integrate with the future networks of digital trade, underpinned by comprehensive back office trade automation can support their transformation.
In a world of intelligent trade services, the smartest banks will win.



]]>Wed, 02 Sep 2020 12:56:48 -0400<![CDATA[STANDBY LETTER OF CREDIT- PURCHASE OR LEASE AN SBLC]]>https://www.mgcapitalgroupinc.com/blogs/post/STANDBY-LETTER-OF-CREDIT-PURCHASE-OR-LEASE-AN-SBLCSTANDBY LETTER OF CREDIT- PURCHASE OR LEASE AN SBLC In today’s financial markets there is misinformation pertaining to Bank Guarantee and Standby Letter of Credit transactions, largely due to the lack of correct information available.]]>

Standby Letter of Credit

In today’s financial markets there is misinformation pertaining to Bank Guarantee and Standby Letter of Credit transactions, largely due to the lack of correct information available. In order to keep informed one must go out of their way to learn about the industry and how it operates.

The Bank Instrument industry is a world where real information, truthful processes and real bank instrument providers are hard to come by. Here we will try to provide some useful information so that you can educate yourself further on how this industry operates. In this section we will talk about Standby Letters of Credit.

What Is A StandBy Letter Of Credit?

Letters of Credit (LC) can be classified as either documentary Letters of Credit or Stand By Letters of Credit (SBLC/SLOC). A Documentary Letter of Credit allows payment to the seller. It facilitates the movement of goods in an international transaction. In trade finance, Letters of Credit is one method of payment used to reduce risk in global transactions between a Buyer and Seller of goods. They are mainly used for commodity and industrial use as performance bonds.

A Standby Letter of Credit is an agreement, not intended to be drawn upon but is a safeguard in the event of non payment by either party mentioned in the contract. You can either lease or purchase a Standby Letter of Credit. In other words; an SBLC is a document issued by the bank guaranteeing payment on behalf of their client. The bank confirms the collateral is held within their clients account, the client buys an instrument and it is then freshly cut backed by Providers capital. Depending on the wording agreed in the DOA, it is possible to Monetize an SBLC.

Finance A Business Using a Standby Letters Of Credit can be used to finance a business; particularly those looking to grow or expand. Having a SBLC Monetized is the best and quickest way for a business to get some much needed cash. Bank instruments can be monetised and used to enter into trade platforms. SBLC’s could be one of the best alternative ways to finance a business. Reason being is that you are not dependent on a lender per se. It is likely that the funds will arrive in tranches and this could be a perfect way to manage your capital.

What Parts Do Banks Play In SBLC Transactions? Technically speaking, “Banks DON’T issue Standby Letters of Credit” Instead, the bank is the deliverer not the initiator of the transaction, they CONFIRM their client has the sufficient funds. For example; let’s pretend you use a courier to deliver a parcel to a customer. You are the Provider of the parcel and the courier is the delivery agent who delivers your parcel to the Receiver. The courier isn’t the Provider of the parcel, they are just the delivery agent whom the Provider uses to send the parcel from the Providers location to the Receivers location.

Using the above example, banks operate exactly the same way when handling Standby Letters of Credit. The bank acts as the courier and they receive a financial instruction from a Provider to deliver one of the Providers assets (Bank Guarantee – BG or SBLC) to the Receiver’s bank. In other words, the banks are in place of the courier, being that they are the Sender and Receiver of Swift Messages most commonly known as MT messages. (Whether it be MT760, MT799..etc..)

Genuine SBLC Providers as discussed at the beginning, genuine SBLC Providers can be hard to come by. The banks don’t advertise SBLC’s as their own bank products, simply because they are not allowed to. Standby Letters of Credit are provided by high net worth clients with large cash holdings in an account at the Bank. High net worth clients are usually hedge funds, private equity, pension funds and large corporations etc.. It is very difficult not only to get in touch with bank instrument Providers, they are very strict too, they don’t mess around.

Genuine Providers perform many checks and balances which means that any authorised mandate agents connected to Providers are too follow strict procedures. This is good new on our part as we know we carry clean business but it means that any business we introduce needs to be able to follow certain procedures. Because of the strict ruling, Prestige will let you know what is required but in general we will ask for POF and BCL to say you can pay for 10% of the LTV/face value of the bank instrument. We want to know that every business that passes us has the capability to afford the lease fee.

How Do SBLC’s Work?

When a company completes the forms to lease an SBLC, what they are essentially doing is borrowing collateral (what this is actually called is a temporary “CTA” Collateral Transfer Agreement). Let’s say that you are an oil refinery company looking to buy oil and are dealing with say ABC Oil. You have an agreement with ABC Oil saying that you want to buy $100M USD worth of oil (on your books you have $10B USD) . You may choose not to use your own bank account and apply through your own bank but instead, prefer to lease a StandBy Letter Of Credit from a different Provider.

There are several ways SBLC’s can be used and it is all in the wording of the MT760. Providers can issue Standby Letters Of Credit for the purposes of:
• Trade and Commerce – (for purchasing of goods).
• They can also be used to back credit lines issued by banks
• And/or project funding

As well, there are Providers who can issue cash backed SBLC’s which are monetizable. However we will need to know who the monetiser is in order to assign the SBLC in favour of the Monetizer.

When leasing a bank instrument, the DOA is a legal agreement signed by both Parties. It states that the titled owner will lease the SBLC for one year and one day at $100M USD giving it back with no liens or encumbrance. The legal documents is called a Deed of Agreement (DOA). Both banks will also send a Ready Willing and Able (RWA) message to each other. The Providers bank confirms it’s ready to issue the SBLC and Receivers bank confirms their client has the funds.

After the DOA and RWA are signed and SWIFT fees are paid, the banks of both parties will message each other until the instrument is transmitted to the Receiver. In some agreements should one fail to meet the timeline, there will be a penalty and risk of no further business.

Two things to take note: 1) There is no standard leasing process, leasing programs differ and each determined by the Provider.  2) The Provider instructs the bank what to do therefore if you choose to go through a bank for an sblc service, you may be faced with lots of paperwork as they have policies and guidelines to adhere to.

Lease An SBLC- You can apply to lease an SBLC in one of two ways.  One way is to apply for a StandBy Letter Of Credit with your bank or; use authorized agents such as ourselves and fill in a DOA (deed of Agreement). Some terms and timelines may be negotiated (there may be an element of flexibility through some Providers). We stress that buyers should clearly understand the documents before signing them. Double check your details, be clear and correct as it can be a very costly mistake.
The Providers bank will send a Ready, Willing and Able Letter on behalf of of their client. It’ll say something like “ Our client on behalf of [bank] is RWA”…. the receiving bank also sends a RWA on behalf of the Receiver. The SWIFT fees are then called upon and the SWIFT messages are exchanged bank to bank until SBLC is issued. A hard copy of the SBLC will be sent to the Beneficiary.

SBLC Funding Process- The image below is an example of the process of acquiring the bank instruments for a Standby Letter of Credit. When the banks have completed their messaging, you may receive a hard copy of the SBLC/MT760. Just bear in mind whether its for commerce purposes or if you can have the SBLC monetized. This is the part many people often get confused.

Fresh Cut SBLC: Fresh Cut only means that it has been freshly issued, “seasoned instrument” means that it was issued in the past and is in the secondary market. People buy fresh cut bank instruments as the bank instrument comes from a direct credible source thus knowing exactly the person/organisation who cut the instrument for lease. Usually bank instruments such as SBLC’s are time limited and should be paid back in full to the Provider within the time specified.

Monetizing An SBLC: After leasing an SBLC, you may want t0 monetise it. All that happens when you monetize an SBLC is the instrument is converted into legal tender. This can take up to 15 days to process and verify. Your bank should be able to do this for you. It won't be monetised for the full amount as it can vary on a number of factors such as; bank rating, country of issuance, LTV … etc.

The instruments must be in your name and there is a time limit on a leased SBLC’s. These bank instruments can only be leased for one year and one day. Bank instruments are checked for forgery and there are strict guidelines to adhere to.  Heavy due diligence will be undertaken. Banks that issue fresh cut bank instruments must be UCP-600 compliant and be a top banking institution.

Purchasing A Standby Letter Of Credit: Purchasing an SBLC, it is similar to the process of leasing a StandBy Letter Of Credit. The main difference is that you own the instrument in your company /name. For example: The Provider is the asset owner, asset holder and asset controller. If you choose to purchase the SBLC, the title of goods will be transferred to you. Purchasing an SBLC is advantageous in that you can then choose to lease the instrument out if you so choose to do so. Ask us about our low cost SBLC’s that can be put into a managed trade program.

SBLC Project Financing V’s Conventional Funding- Conventional funding can take a long period of time from submission to receiving funds for a project. The reasons can include;
• A lengthy due diligence procedure and/or
• Whether or not the funder has an appetite
• Other projects in the pipeline thus having to wait a few months.

Financing projects with an SBLC can be a cheaper and faster route as the procedure takes a few weeks and is less onerous. Leasing a bank instrument can be also a cheaper as some investment banks charge thousand of dollars to fund a project.
Please note; it is our requirement that we ask you to provide Proof of Funds and/or a bank comfort letter. This is to demonstrate to the Provider that the companies we represent are in good faith and in trust to pay lease fees.
Swift Fees When people apply for an Standby Letter of Credit most do not understand how the mechanism behind the transaction works. There are certain buyers who think that there are no fees involved when issuing a bank instrument and presume the SWIFT messaging service is free. This is not the case. The banks of both parties communicate as per the DOA agreement using SWIFT messages, recognizable to us as MT messages.

Please check on the search engines for SWIFT Fees. Sending a SWIFT message isn’t cheap, these are banks charges! We suggest that if you need an SBLC, prepare at least 12% of the asking amount to go towards the cost of an SBLC.
One way in which the buyer might not have to pay SWIFT Fees is by having the bank issue a Bank Comfort Letter (BCL). This letter just states that the Buyer has the funds. This needs to be arranged before the DOA is signed.

Other Fees:
Depending on the Provider we generate our fee from the cost of the instrument. You may notice a purchase/lease price plus a commission price eg (10+2). The commissions are paid for any intermediaries/brokers. We keep our commissions low to Provide you with a fair deal.

Need A Large Bank Instrument?
If you need a Standby Letter Of Credit for a substantial amount (ie in the Billions in tranches), we can arrange this for you on a case by case basis.

Information About SBLC Procedures- Please note that it is NOT advisable to change the SBLC Procedure written in the DOA. We are not in a position to dictate to our Providers how to operate their Procedures. We are able to give you a few choices on different Providers. Changing procedure terms can be frowned upon as it makes the validity of the SBLC enquiry questionable.
We have partnered with a firm to provide trade and commerce letters of credit for straight forward transactions. please let us know your requirements on the contact form. Thank you

How To Apply For A Bank Instrument- You can apply to have an Standby Letter Of Credit either through a bank or use our services. We can give you a number of low cost options to help fund your project. As our team has streamlined the process the paperwork saving time and headaches! We can walk you through the process from start to finish.



]]>Wed, 02 Sep 2020 12:43:36 -0400<![CDATA[Leasing Bank Instrument]]>https://www.mgcapitalgroupinc.com/blogs/post/LEASING-BANK-INSTRUMENTSBy definition, “leasing bank instruments” involves borrowing an MTN or BG for the purpose of proving temporary collateral.]]>

Leasing Bank Papers

By definition, “leasing bank instruments” involves borrowing an MTN or BG for the purpose of proving temporary collateral. Once the lessee receives the bank instrument, they can prove these assets for the opportunity they have chosen. In most cases, investors attempt to use a leased bank guarantee to finance projects, attain loans, or enter in private placement investments. Though this sounds great from the pitch of a greedy broker, the reality is, investors rarely succeed.


Over the last decade, bank instrument leasing has evolved from an extreme rarity to a rapidly growing industry.  You may say, “Isn’t this good for both investors and brokers?” Well, bank instrument leasing can definitely be good for the brokers, but for investors, it can be the exact opposite.  The reality is, when you lease bank instruments, you will NEVER have full control over the asset.  Think about, if you owned a 500M note, would you let an investor put it at risk for 3% (15M). I don’t think so! Even if you get an MT 760 to your account, the leased funds are blocked. Though leased bank instruments can prove temporary collateral, you can NEVER lien, block, or assign leased funds to another person. This is the part most leased instrument providers fail to mention, leaving their pockets fatter in the midst of your failure.

Even though we have warned our readers, we know some of you will still choose to lease bank instruments. For those who pursue bank instrument leasing, please be safe and extremely cautious. There is no risk in assessing leased instrument providers, but always remember what you have learned here before making a decision. For more information on leased bank instruments, take a look at the articles in the private placement category of our blog. This will teach you the facts of leased bank instruments, and far more.

]]>Wed, 02 Sep 2020 12:34:33 -0400<![CDATA[Bank Guarantee (BG)]]>https://www.mgcapitalgroupinc.com/blogs/post/Bank-GauranteeProject owners can apply for lines of credit with their own bank to support the financing of their project. Normally the credit line needs to have some collateral backing it, which is where a bank guarantee letter (BG) can come into play.]]>

Bank Guarantee To Fund Projects


Project owners can apply for lines of credit with their own bank to support the financing of their project. Normally the credit line needs to have some collateral backing it, which is where a bank guarantee letter (BG) can come into play. There are options for project owners to either lease or buy a bank instrument. A bank guarantee such as an SBLC is backed by collateral for one year and one day and then you can decide whether or not you want to renew the lease?. If the bank guarantee isn’t renewed, then it has be returned unencumbered and free of any liens.

When leasing or purchasing a BG from a bank instrument provider, there will always be a fee involved. It is possible to set up an agreement whereby a Monetizer pays for the fee. This has to be made very clear in the agreements. The difference between the purchased and leased amount can be a substantial amount of money. However if using a Closed End Transaction (for project funding,) the fee can be taken care of within the transaction itself.



Open vs Closed End Transactions
Where transactions can fail is where third party service providers are being used and none of them have pre-agreed arrangements in place. Other points to consider:

It is very hard to find genuine providers of bank guarantees. There are many service providers for BG’s on the internet, it’s quite hard to decipher who is legitimate and who can perform? Trying to source providers can be VERY risky, it can also be a waste of time and be an expensive way to do business. You have to be incredibly diligent and very careful in who you deal with in this area of finance using Bank Guarantees. The internet is fraught with those who proclaim that they obtain BG’s whereas more often than not they are only seeking fees.


The same can hold true when looking for SBLC monetizers and traders. This is why where all possible if you find a ‘closed ended transaction’ whereby all service providers are already in agreement with each other as opposed to trying to source each service provider individually (open ended) this would be an advantage. Common pitfalls for applicants who do not understand how BG’s work:


1.) People don’t realize that one service (Provider) has to dovetail the other (Monetizer), eg; one party may not recognize the other. All of a sudden you have a bank instrument with no-one to go to to monetize and/or trade it, leaving yourself a hefty bill.
2.) The wording on the BG is not suitable for Monetization and designed specifically for commerce.
3.) Time left on the BG for Monetization.


Another case in point, Monetizers block the bank instruments when they go into trade. You can not physically pass on a leased instrument to trade with. The trader will not trade a bank instrument if they have not agreed to do so with the monetizer.


Bank Guarantee Security Methods
International bank guarantee providers, monetizers and traders all work in tandem with each other for the purpose of funding projects. Each part of the transaction process work as a whole by having pre-arranged agreements with one another. By having pre arranged agreements with Providers, Monetizers and Traders working in tandem with one another, will  this helps a great deal help towards minimizing risk during any part of the financial transaction. We call this a ‘close ended’ transaction.



Where all possible, safe guards have been put in place to ensure maximum protection of client’s money. (Issuance and mo netization of a bank guarantee.) For example; banks will adhere to ICC banking rules as well, will operate under the regulatory framework within the country the operate in. That and depending on what process we are utilizing, there may be insurance bonds put into place to protect client’s funds.


There are are many options when applying for a Bank Guarantee, whether you pay the SWIFT fee or not to levels of comfort you need that the Provider will perform. As with Closed End Transactions, it is the best way to manage the issuance and monetization of a Bank Guarantee. Additional layers of security are added to help streamline the process.


One security approach is to use a solicitor/lawyer service to put the fees into an escrow account (POF) working on behalf of the beneficiary approved by the Provider. The fees are not handed to the provider until a pre-advice MT799 has been delivered by SWIFT. Another approach is we align ourselves with an underwriter who is able to insure the capital. In other circumstances, if the Provider can not cannot perform, you will have an agreement in place that the fees will be returned. There’s always some kind of paper trail and it is standard practice that receivers will get a hard copy of the SBLC once all fees have been remitted. As a company we are not risk takers and therefore work with service providers who have done their utmost to put safety measures in place to minimize risk to the best of their ability.


]]>Wed, 02 Sep 2020 12:18:26 -0400<![CDATA[Private Placement Program]]>https://www.mgcapitalgroupinc.com/blogs/post/PRIVATE-PLACEMENT-PROGRAMSWhat is Private Placement Programs ? Do they Really Exist? Before we get to the answer, let’s define the term “private placement program”.]]>

What is Private Placement Programs ? Do they Really Exist? Before we get to the answer, let’s define the term “private placement program”. Though there are a number of different types of investments that are referred to as “private placement”, such as pre-IPO funding, managed Forex, equity investing, or organized investment pools,  we are referring to the process of trading discounted bank instruments (MTN’s,BG’s, SBLC’s)  to generate  high profits.  This is a niche that has flooded with potential clients lately, but the question is, are any of these clients ever successful?.  This is a niche that has flooded with potential clients lately, but the question is, are any of these clients ever successful?.  This is a niche that has flooded with potential clients lately, but the question is, are any of these clients ever successful?.  This is a niche that has flooded with potential clients lately, but the question is, are any of these clients ever successful?


This is a question we get every day from people who are new to the private placement business.  Most of the people we speak to are just beginning to do their research, and want to make sure they are not wasting their time with something that’s “too good to be true”.

When you go to government fraud prevention sites, they say that private placement programs don’t exist, but when you read forums and speak to the brokers and traders, they say they do. Who is really disclosing the full truth? Well, let’s take a look at the incentives behind each of their claims.


The brokers are convinced private placement exists, but then again, they are the ones in line to get “huge commissions” on transactions.                                        The regulatory agencies swear private placement doesn’t exist, but then again, if they openly supported it, the equity and traditional investment markets would collapse, and fraud would rise in the private markets.


When you look at it, they both have strong motives for each of their positions, but there is only 1 truth…
The fact is, private placement programs are REAL and DO EXIST. The problem is, they are extremely tough to screen, and even harder to succeed with. Over the last 10 years the once unknown private placement business has spread all over the internet, which has lead to a flood of inexperienced brokers into the market.  When you combine the recent increase in participation, with private nature of these programs, it can be a recipe for disaster if you are not properly informed.


We are not writing this article to state an opinion, but rather to state fact. We have closed a private placement transaction, and we can confirm they do exist. The only thing to remember is this, it took us over 9 years, and thousands of contacts to find one program that performed.  We literally contacted over 20,000 people who were in the business, and now we work with less than 10. In short, think of this as a search to find a needle in 100 haystacks, not as a path to immediate wealth.


Due to non solicitation laws, these programs can not be marketed, you need to be invited to participate. If you are a qualified project manager or investor and have 100M USD or EURO and would like to be considered by one of the few REAL PPP in the world, contact us to see if we can get you through compliance.


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