Leased Financial Instrument.

Leased Financial Instrument. The person or entity who leases a bank instrument gets temporary assignment of that bank instrument for an agreed upon fee paid to the owner (lessor) by the borrower (lessee). Once the Lessor has assigned the instrument to the Lessee, the borrower (Lessee) can for the period of the lease show these funds for future transactions which require a proof of sufficient capital. A "leased bank instrument" refers to an instrument such as a "BG, MTN, BOND or SBLC" which is borrowed and can be used for a preset period of time ( the term of the lease) and price ( cost of leasing the instrument). Having the instrument assigned in his name, allows the borrower (Lessee) to use the instrument as proof of collateral. The Lessor/Provider will lease the instrument for a term of one year with the possibility of renewing the lease at the end of the lease term. The fees involved in leasing a bank instrument are an initial reservation fee for reserving the instrument and then fee for the cost of leasing the instrument for one year. The Leasing fee is a percentage fee of the amount of the instrument being borrowed/leased. Leasing of financial instruments is an option usually chosen when other options to raise financing have not worked and the borrower has not been able to obtain a letter of credit from his bank. Many top worldwide banks will lease bank guarantees, usually with a minimum amount of $5 million to $10 million, all the way up to $10 billion and more. Kindly contact us today for all your leased financial instrument BECTIC FINANCE COMPANY LIMITED website : becticfinance.com Email : info@becticfinance.com NOTICE: Brokers are 100% welcomed and protected. Our brokers are paid handsome commission for every successful transaction. If you want to be our broker or company representative kindly send us email for more information.