Hey there! I'm Michael Choi, a Solicitor in Hong Kong. Back in the 80s, I had the privilege of studying in the United Kingdom, and since then, I've had an incredible journey serving multiple reputable law firms in Hong Kong. Currently, I hold a senior position at a prestigious law firm, and I absolutely love what I do!
But that's not all there is to me. I'm also passionate about using my legal expertise to help needy people. For the past decade, I've been offering free legal advice to those who can't afford representation, and it's been an incredibly fulfilling experience. But it doesn't stop there - thanks to my extensive knowledge of trade finance products and international trade experience, I've assisted individuals and companies in securing funding for their projects and business growth, extending beyond my legal profession.
Warren Buffett once said, "Intelligence, Energy, and Integrity are the three things to look for in a person. If they don't have the last one, don't bother with the first two." I couldn't agree more with this philosophy, and I always strive to embody these values in my work and personal life.
Small businesses are the backbone of our economy and deserve all the support they can get. They bring innovation, create jobs, and push our nation forward. However, when it comes to funding, traditional banks can sometimes be a stumbling block, making it hard for small businesses to get the support they need to grow. That's where I come in! With my leasing and monetization services for Bank Guarantees (BG) and Standby Letters of Credit (SBLC), small businesses and startups can access the financing they deserve without the hassle of strict collateral and credit history requirements. Let's delve into BG/SBLC leasing.
What is BG/SBLC Leasing, and is it the Same as Collateral Transfer?
BG and SBLC are widely trusted financial instruments used across industries to secure credit lines, project funding, trade finance, and other financial transactions. BG/SBLC leasing involves the transfer of a financial instrument from the owner, also known as the provider, to a third party, referred to as the lessee, for a specified period, typically for a fee, otherwise known as the leasing fee. The lessee then can use the BG or SBLC as collateral to secure financing from other parties, such as banks or investors, providing a secure and reliable financial solution.
Now, let's clear up a common misconception โ BG/SBLC leasing is not the same as collateral transfer. When leasing a BG or SBLC, the lessee temporarily takes possession of a bank guarantee or standby letter of credit but does not own it outright. This arrangement enables lessees without tangible collateral to secure financing for their business or project. On the other hand, collateral transfer involves the transfer of physical assets or securities to the lender as security for a loan. See the difference?
BG/SBLC Leasing Services
My services allow you to lease a BG or SBLC from a reliable provider and convert it into legal currency through monetization. As an experienced lawyer in Hong Kong, I have access to a credible network of investors who can provide reliable financial instruments like BGs or SBLCs as collateral for your small or startup business loans. This can be a helpful option for businesses that need the credit rating or collateral to secure a conventional loan or for those looking to expand their financing options. According to recent data, the global BG/SBLC leasing market is expected to grow at a compound annual growth rate of 7.8% from 2020 to 2027. Say goodbye to the hassle of traditional bank loans and hello to hassle-free financing alternatives that could work for you. BG/SBLC leasing and monetization are viable options that cater specifically to small businesses and startups.
However, it is essential to note that BG/SBLC leasing for obtaining small or startup business loans is not without risk. The borrower must ensure they choose a reliable BG/SBLC provider with access to a banking network and can provide authentic financial instruments. Many fraudulent providers in the market offer fake BG/SBLC, which can result in legal and financial repercussions for the borrower.
How Much Does it Cost to Lease a BG or SBLC?
The cost of leasing a BG or SBLC can vary depending on several factors, such as the instrument's amount, the lease's length, and the lessee's creditworthiness. Generally, the leasing fee for a BG or SBLC can range from 5% to 15% of the instrument's face value. However, it's important to note that some providers may require additional fees, such as application, processing, transmission, and other charges. It's advisable to compare leasing fees and terms from different providers before deciding. For your information, my provider only requires a 7% annual leasing fee and a 0.15% - 0.2% issuance/transmission fee. Please find the transaction procedure here. With careful consideration and due diligence, BG/SBLC leasing can be a reliable and cost-effective financial solution for businesses and individuals.
Note: The minimum face value for BG or SBLC is 20 million USD/EURO, while the maximum is 500 million USD/EURO. Any project that surpasses 500M is deemed unfeasible and unrealistic.
Upfront Fees - Stay Safe from BG/SBLC Scams with Escrow
If you plan to lease a BG or SBLC, you might wonder about the upfront fees involved and how to avoid scams. Paying an upfront fee can be nerve-wracking, especially with the increasing number of scams in the finance industry. But don't worry; to protect your interests and ease your worries, you can place the upfront fee in escrow with the law firm of your choice in Europe to ensure that it will only be released once all the terms and conditions are met, providing you with maximum peace of mind and safeguarding you from potential scams.
Executive Summary and Business Plan for Due Diligence
To get started, all you need to do is send me your executive summary/business plan detailing how you intend to use the funds, your business operations, goals, strategies, target market, financial projections, potential risks, and ability to manage debt responsibly. I'll conduct the necessary due diligence to ensure everything checks out and forward your project details to a suitable BG/SBLC provider. If the provider approves your application after a background check, you'll receive a BG or SBLC from a reputable bank via Swift MT760, enabling you to secure your small or startup business loans.
The choice of issuing bank depends on your location. Still, the Provider can generally arrange delivery from reputable banks such as Societe Generale, Credit Agricole, Santander, ING Bank, and Nordea Bank, which rank among the top 100 banks worldwide.
BG/SBLC Monetization
After obtaining a leased BG or SBLC, the next step is to monetize it. Monetization of bank instruments enables you to convert them into legal currency, giving you access to the funds represented by the bank instruments before their maturity date.
The Loan-to-Value (LTV) can vary and depends on factors such as the issuer's bank rating, the face value of the instrument, the terms on which it was issued, and the verbiage of the MT760. Don't forget to factor in the time elapsed since the instrument was issued.
The monetizer I work with does not request upfront fees to monetize a BG or SBLC. If you're interested in my services, please provide the necessary documentation, including your CIS and Certificate of Incorporation, a copy of your BG or SBLC, and a letter from the issuing bank confirming its authenticity. I'll handle the rest of the process, ensuring a hassle-free experience.
๐ฆ๐ฐ New Service: Debt Financing
Great news! You can now secure a small or startup business loan with a BG as collateral through my new debt financing option, launching in October 2023. The best part? You don't have to go through the hassle of finding a lender or BG provider, as I've got you covered with a convenient one-stop-shop approach. The lender only accepts BGs from providers in my network, so you can rest easy knowing you're working with a trusted and reputable lender. This debt financing service is the perfect solution to take control of your finances, whether you're looking for small or startup business loans. Let me help you take your business to new heights and reach the success you've always dreamed of!
Building trust with BG/SBLC providers, investors, monetizers, and lenders is crucial for securing funding for future projects. Being transparent and honest about your business's financial state is essential.
Please do not hesitate to contact me with any queries or additional information.
Protect Your Assets and Minimize Fraud Risk with Escrow Services
What are Escrow Services?
Today's digital era increases the likelihood of fraud and scams. Whenever you participate in a financial transaction, it is crucial to keep in mind the potential risk of fraud. Fortunately, there's a reliable and effective solution to mitigate these risks - escrow services. This process involves a neutral third party, known as the escrow agent, who acts as a custodian of the assets or funds until the contractual requirements agreed upon by both parties are fulfilled. Once the conditions are met, the escrow agent will release the assets or funds to the appropriate recipient. This means that the escrow agent will temporarily hold the assets or funds until all the conditions are met, ensuring that both parties' interests are protected.
Exploring the Benefits of Escrow Services
Escrow services offer numerous benefits, including increased security and protection for both parties involved in a business transaction. By using an escrow service, you can be confident that your transaction is fair, safe, and secure. Additionally, escrow services provide transparency, as all parties can track the transaction's progress, ensuring that everything proceeds according to the agreed-upon terms. By utilizing the services of a reliable escrow agent, you can rest assured that your transaction will be executed safely, securely, and transparently, providing you with the peace of mind you need to proceed confidently.
Escrow services in business transactions have become increasingly widespread in recent years. It's no surprise, given the myriad of benefits it offers. ESCROW SERVICES HAVE PROVEN VALUABLE TOOLS FOR SMALL BUSINESS OWNERS, from BG/SBLC leasing to project finance, trading activities, commodities sales and purchases, and real estate, where significant money is at stake. In addition, escrow can also serve as a Proof of Funds (POF) in situations where a purchaser wishes to assure a seller that they have sufficient funds to complete the transaction.
Protect Your Funds with Meticulously Crafted Escrow Agreements
Risk reduction is top of mind in any global transaction, and escrow services are safe and secure and always a smart way to reduce fraud risk and protect your assets. With over 25 years of experience as a senior lawyer and handling international commodity trading and financial transactions, I can assist you in developing an escrow structure that's customized to your specific needs and protects your funds throughout the entire escrow process.
Once my law firm is engaged to provide escrow services, it immediately establishes an escrow account. It then prepares a meticulously crafted escrow agreement, protecting your funds until the transaction is complete. Trust me to help you unlock the many benefits of using escrow services for your business transactions.
How Much Escrow Agent Fees Are Reasonable?
Securing your transactions with confidence requires the right escrow agent. While some may offer lower fees, it's crucial to consider the potential risks that come with it. Instead, opt for a reputable and experienced escrow agent who charges between 1% to 2% of the amount in escrow, which is considered reasonable. Their expertise and security measures are invaluable. Entrusting your funds to a trusted and professional escrow agent ensures protection against fraud, theft, and other risks. Don't take chances with your hard-earned money. Choose a professional escrow agent that provides the peace of mind you deserve. Contact me today to learn more.
If you're interested in learning more about my escrow services, please fill out the form below to get in touch. I'm here to help you safeguard your assets and minimize the risk of fraud.