"> FAQ | FUNNY SA

FAQ

    FREQUENTLY ASKED QUESTIONS ON BANK INSTRUMENT (BANK GUARANTEE | SBLC) TRANSACTION

    • Where does the sblc providers operate? The company operates out of Switzerland and United Kingdom under a SPE (Special Purpose Entity) established by Funny SA for the purposes of assuming and managing segregated business risks within its mandate.
    • Which bank will be issuing the instrument? Deutsche Bank, Barclays Bank Plc and HSBC Bank Plc are the lead banks. Any paper delivered will be “A” rated or better.
    • How long does the process take from start to finish? It usually takes 5-10 banking days from when the application is submitted and the bankers exchange the Swifts.
    • What is the amount for the smallest and largest instrument? Minimum 10M, Maximum 10B per Contract.
    • What bank can the Client use for this transaction? The Client should use an investment-grade rated bank with Swift capacity.
    • How does the Client’s name appear on the instrument? The Client will appear as the Beneficiary.
    • Are the instruments verifiable and confirmable? Yes, they’re verifiable and confirmable bank to bank.
    • Can the instrument be assigned or transferred to another Beneficiary? SBLC can be assigned or transferred to the new Beneficiary once, and maybe twice, if there is a valid reason. BG is not assignable or transferable. There may be banking costs involved but we don’t charge fees for the transfer.
    • Is the instrument callable? Yes, the instrument would be callable but not prior to maturity since the instrument is issued for 350 days.
    • Can the payment for the instrument be extended beyond the 20 banking days? Yes, if more than 5 days is needed for the 6% | 40% down payment then each additional 5-day period will require a 20K Euro paid into our nominated account. This extension fee is charged by the issuing bank that’s deposited into a third party escrow account and released as agreed per the escrow agreement.
    • Can the client pay the balance of 100% anytime during the 350-day period? Yes, payment for the balance is open with no bonus or penalty
    • Does the recipient of an Assigned instrument become the “owner”? No, the assignment of an instrument does not convey title or ownership and the recipient does not become the owner. Ownership takes place when the Client pays 100% of face value or provides a Bank Undertaking for payment of 100% face value upon maturity, whereupon the title will be transferred to the recipient.
    • Can an Assigned instrument be monetized? An Assigned instrument may be monetized but because the Client has not paid in full for the instrument, nor has its bank issued a payment guarantee undertaking to pay in full for the instrument, the title still belongs to the provider. Clients should discuss the Assigned instrument with their own monetizer prior to engaging in the transaction.
    • What currency is used for the Transaction and charges? The transaction can be USD, Euro, British Sterling or Swiss Francs but if the Client puts up a refundable Deposit, it is €60K Euro (per 100M) irrespective of the currency for transaction. The deposited with an independent, third party, licensed, registered and bonded facility.

      This information is only intended as a basis for further discussion