Overview - Leased Instruments

Hedrick Consulting offers a number of programs for leasing a Bank Guarantee (BG), a Stand-by Letter of Credit (SBLC), or other instruments.  Delivery is by SWIFT MT-799 or SWIFT MT-760. 

Terms and Pricing vary.  Some programs provide structured payments and some require full payment up front.  Click HERE for current programs and pricing.  A brief overview of the parties and the process follows.  Call 919-443-5135 anytime, 24 hours a day.  If calling from outside the United States, please include your country’s prefix code, when leaving your callback number.

The Parties

Issuing Bank – This is the bank that issues the SBLC or BG. 

Financial Backer – This is the entity that puts up the collateral, the money or other assets that back up the SBLC or BG.  It is not the ISSUING BANK.  A good example to help you understand this:  You go into HSBC and purchase a certified check.  You are the financial backer by putting your money with the bank.  The issuing bank issues the instrument (the certified check) and agrees to honor it, if presented.  They are, however, using your money.

Broker/Lessor – Hedrick Consulting

Client/Borrower/Lessee – The entity to whom the lease is granted.  You.

Lender – If your use of the instrument is to obtain financing, this is the entity to whom you or we SWIFT the instrument in exchange for their lending you funds.

The Process

1.  The Client/Borrower enters into contract with the Broker/Lessor, and any agreed upon payments made.  Additional contracts and paperwork are issued and signed as part of the process to finalize the lease and delivery.

2.  The Financial Backer instructs the Issuing Bank to issue the SBLC or BG (the instrument).  The instrument is backed by collateral that the Financial Backer has on deposit with the Issuing Bank.  The instrument will be titled in the name of the Client/Borrower/Lessee.  If the use of the instrument is to obtain a loan, it is advised that the pre-arranged lender be made the beneficiary of the instrument and that the instrument be sent directly to the lender’s bank via SWIFT MT-760.  Otherwise, there may be additional SWIFT charges, if the Client/Borrower/Lessee is made the beneficiary, the instrument is sent the Client/Borrower/Lessee’s bank, and later the beneficiary must be changed and the instrument moved to another bank.

3.  Client/Borrower/Lessee pays balance on lease fees if any due, or makes monthly lease payments on any monthly arrangement.

 

At a minimum, I will need to know:

1.  What size and type of instrument do you require?

2.  What delivery method do you require?

3.  What is your intended use of the instrument?

4.  How soon do you need the instrument?

5.  How much cash do you have immediately available to pay for the instrument?

Call 919-443-5135 anytime, 24 hours a day.  If calling from outside the United States, please include your country’s prefix code, when leaving your callback number.

Scott Hedrick

919-443-5135

hedrickconsultinginfo@gmail.com
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