Credit Enhancement

 Balboa Trade Credit Enhancement

Bank Instrument & Proof of Funds Credit Enhancement

Balboa Trade: Bank Instrument and Proof of Funds Credit Enhancement

Balboa Trade has been providing Credit Enhancement financial solutions to our clients since 2006. Over this time we have successfully aided in closing transactions related to import/export international trade, trade finance, project finance, bank instrument or bank debenture buy/sell transactions, real estate pool acquisitions, real estate development, and business acquisitions.

As our client you can enjoy simple, straight forward Credit Enhancement by leasing or borrowing funds from our asset holders by loan agreement . By doing this you gain access to a consortium of lease bank instruments and lease proof of funds cash accounts arranged from top bank money centers in the USA, Europe, and Asia.

Bank Instrument Credit Enhancement

 

Bank Instruments

Bank Instrument Credit Enhancement

  • Top Money Center Banks: HSBC, Credit Suisse, Deutsche Bank, Chase Bank, Wells Fargo, and others
  • Offshore Trust: Switzerland, Panama, Belize
  • Letter of Credit
  • Standby Letter of Credit (SBLC)
  • Bank Guarantee (BG)
  • Certificate of Deposit (CD)
  • SWIFT MT799 (Pre Advice)
  • SWIFT MT760 (Full Delivery)
  • Minimum $1M account size up to $1B
  • month to month account service or 12 months with extensions

 


Proof of Funds Credit Enhancement

 

Proof of Funds: Confirmation Letter, Bank Verification

Proof of Funds Credit Enhancement

  • Top Money Center Banks: HSBC, Credit Suisse, Deutsche Bank, Chase Bank, Wells Fargo, and others
  • Offshore Trust: Switzerland, Panama, Belize
  • RWA Letter
  • Bank Comfort Letter
  • Blocked Funds Letter
  • SWIFT MT799 (Pre Advice/POF)
  • SWIFT MT760 (Block/Guarantee of Funds)
  • Verification of Deposit
  • Account Statement/Tear Sheet
  • Seasoned Funds
  • Minimum $1M account size up to $1B
  • month to month account service or 12 months with extensions

What is Credit Enhancement?

There are a lot of different uses of the term Credit Enhancement. In general, it is a method whereby a person or company makes provisions to improve its debt or overall creditworthiness. When achieved the lender or bond holder gains a greater reassurance that the borrower or bond seller will honor the obligation due to a third party guarantee, insurance, or collateral.

What Does Credit Enhancement Achieve?

When accomplished effectively, Credit Enhancement assists to reduce the overall risk of default. The borrower or bond seller gains access to financing options previously not available. This is achieved by adding financial assets such as bank instruments and cash collateral accounts that increases a company’s overall credit rating- often gaining access to lower interest rates and better financing terms.

Credit Enhancement Methods

Bank Instruments

There are a variety of ways Credit Enhancement is accomplished. Cash accounts can be set up at top world banks on behalf of the client from which Bank Instruments are issued such as a letter of credit, standby letter of credit, bank guarantee, or other forms of documentary letters. The bank instrument can be used to enhance the clients credit worthiness for primary or secondary collateral, security guarantee of payment, or as a proof of funds to show financial capability and readiness.

Cash Accounts

Balboa Trade can arrange the setting up of Proof of Funds cash collateral accounts from which various Proof of Funds Letters can be provided such as a Bank Comfort Letter, RWA Letter, Verification of Deposit Letter, Blocked Funds Letter, as well as account statements  and tear sheets. These letters can be issued by bonded courier, bank to bank email, fax, or through the SWIFT system, such as a proof of funds pre advising SWIFT MT799 or financial guarantee by SWIFT MT760.

 

 

Proceed to Proof of Funds Procedures

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