Our Blocked Funds Letters service provides clients with the necessary documentation to demonstrate financial capacity for various business transactions.
This service offers clients the flexibility to secure payments and transactions by leveraging a bank-issued SBLC, thereby enhancing trust and mitigating financial risks.
For medium-long term transactions, we operate on OTC (over the counter) markets, which are the world's main source of liquidity. We specialize in the placement of corporate bonds defined as "Promissory Notes", for 2 - 4 - 8 years, then allowing the issuing company to amortize in installments during the entire period of validity of the financial service.
RELATIONSHIPS OFFICE: Milan, +39 02 30314124 milan-office@ai-bank.co.uk Company number 15863824 SIC Code 66110
FINANCIAL INSTRUMENTS:
BLOCKED FUNDS LETTERS # BLOCK FUNDS
LETTERS OF CREDIT # L/C
STANDBY LETTERS OF CREDIT #SBLC
LETTERS OF READINESS AND CAPACITY #RWA
PROOF OF FUNDS LETTERS #POF
COMFORT LETTERS #BCL
WHAT IS A BLOCK FUNDS LETTER ?
A BLOCKED FUNDS LETTER IS AN IRREVOCABLE DOCUMENT ISSUED AT 1/2 SWIFT MT 799 BY A BANK OR FINANCIAL INSTITUTION IN THE INTEREST AND ACCOUNT OF A PAYER TO A THIRD-PARTY BENEFICIARY BANK CERTIFYING THAT SUCH FUNDS ARE BLOCKED WITH REFERENCE TO A SPECIFIC FINANCIAL TRANSACTION AS SECURITY FOR THE OBLIGATIONS ASSUMED BY THE ORDERING PARTY IN RELATION TO SUCH FINANCIAL TRANSACTION AND THAT THE BLOCKED FUNDS CAN BE TRANSFERRED TO A SIMPLE REQUEST FOR COMPENSATION FROM THE BENEFICIARY BANK IF THE PAYER FAILS TO FULFIL ITS OBLIGATIONS.
WHAT IS A LETTER OF CREDIT (L/C) ?
A LETTER OF CREDIT (L/C) IS A REVOCABLE / NON-REVOCABLE COMMITMENT ISSUED BY THE BANK OR FINANCIAL INSTITUTION TO PERFORM A PAYMENT SERVICE AT 1/2 SWIFT MT 760 SUBJECT TO DOCUMENTARY VERIFICATION ACCORDING TO THE INDICATIONS PROVIDED BY THE CUSTOMER.
WHAT IS A STANDBY LETTER OF CREDIT (SBLC) ?
A LETTER OF CREDIT (SBLC) IS A NON-REVOCABLE COMMITMENT ISSUED BY THE BANK OR FINANCIAL INSTITUTION TO PERFORM AN INDEMNITY SERVICE AT 1/2 SWIFT MT 760 IF THE CUSTOMER HAS NOT DULY DONE SO.
WHAT IS A LETTER OF READINESS AND CAPACITY (RWA) ?
A LETTER OF AVAILABILITY AND CAPACITY (RWA) IS A DOCUMENT ISSUED BY A BANK OR FINANCIAL INSTITUTION TO ITS CUSTOMERS. IT DEMONSTRATES THE INTENTION AND ABILITY OF CLIENTS TO INITIATE A COMMERCIAL FINANCIAL TRANSACTION FROM BOTH A LEGAL AND FINANCIAL PERSPECTIVE. AFTER ISSUANCE, THE LETTER OF AVAILABILITY AND CAPACITY (RWA) IS SENT TO THE BENEFICIARY VIA SWIFT MT799 MESSAGE.
WHAT IS A PROOF OF FUNDS LETTER? (POF)
A PROOF OF FUNDS (POF) LETTER IS A DOCUMENT THAT HELPS THE SELLER KNOW THAT THE BUYER HAS CASH FUNDS AVAILABLE. THIS SHOWS THAT THESE FUNDS ARE NOT ONLY LEGITIMATE, BUT ALSO OBTAINABLE. A PROOF OF FUNDS (POF) LETTER IS OFTEN REQUIRED AT THE BEGINNING OF NEGOTIATIONS BETWEEN PARTIES WHO HAVE NOT WORKED TOGETHER IN THE PAST. THE POF NOT ONLY PROVES THAT THE BUYER HAS CASH IN THE BANK, BUT IT CAN ALSO HELP DEMONSTRATE TO THE SELLER THE SERIOUSNESS OF THE BUYER IN CLOSING A DEAL. AFTER ISSUANCE, THE PROOF OF FUNDS (POF) LETTER IS SENT TO THE BENEFICIARY VIA SWIFT MT799 MESSAGE
WHAT IS A BANK COMFORT LETTER? (BCL)
A BANK COMFORT LETTER (BCL) OR, AS IT IS SOMETIMES CALLED, A BANK CONFIRMATION LETTER, IS A LETTER FROM A BANK OR FINANCIAL INSTITUTION THAT CONFIRMS THE INTENTION AND ABILITY OF CUSTOMERS TO CONCLUDE A FINANCIAL TRANSACTION BOTH LEGALLY AND FINANCIALLY. THE BANK'S COMFORT LETTER OFFICIALLY GUARANTEES THE FACT THAT THE BORROWER (AN INDIVIDUAL, BUSINESS, OR AN ORGANIZATION) HAS THE RIGHT TO BORROW A CERTAIN AMOUNT OF FUNDS FOR A SPECIFIC PURPOSE.
LEGAL AND REGULATORY CONSIDERATIONS:
FINANCIAL INSTRUMENTS ARE SUBJECT TO JURISDICTION-SPECIFIC LEGAL AND REGULATORY FRAMEWORKS AND THE NATURE OF THE COMMITMENTS MADE. BANKS AND FINANCIAL INSTITUTIONS MUST COMPLY WITH THESE REQUIREMENTS TO ENSURE COMPLIANCE AND AVOID PENALTIES OR EVEN CRIMINAL CONSEQUENCES..