Purchasing of SBLC with Exit Buyer ready
Buyer becomes the Owner of a Standby Letter of Credit and sells the instrument to an exit buyer with a 20-point spread. What’s interesting in the financial structure is that the exit buyer is “ready”, we mean that a selling contract is in place with the exit buyer “before” that the price for the first purchasing of the instrument is paid, exactly as it happen with the Arbitrage contracts.
The Exit Buyer is a major trust based in London, England, well known to HSBC LONDON and has remained one of the bank’s top exit buyers on managed-buy sell instruments forseveral decades
File Download code: H-011-10-22-04
Once the Client shows proof of verified funds in their bank account, and BEFORE the Provider even purchases the SBLC first with their own money, the Exit Buyer contacts the Client upfront to first enter into an arbitrage contract to purchase the verified HSBC LONDON SBLC at 64 points for a 20-point spread of the Face Value of the instrument.
Then, the Provider purchases the HSBC LONDON SBLC instrument upfront with their own money and registers and posts the instrument in the HSBC LONDON banking system under the Client’s name in full bank custody at no cost to the Client.