Dear Reader
Welcome to our 'Standby Letter of Credit' calculator and metrics page. Here you can calculate the various stages and values of an SBLC. This page calculates the separate components for the client’s proposed investment SBLC and will calculate all the resulting entries.
Kindly enter the proposed value which the client requires in their fund to successfully invest into all their projects within the ‘Required Amount’ field below. The calculator will then calculates the remainder of the details and content in the corresponding sections which again.
Then kindly select the appropriate options and enter the remainder of the values in the calculator which will provide the various results in the output fields at the bottom of the metric.
A general qualifying factor is that clients requiring a capital advance through an SBLC (Standby Letter of Credit) capitalisation, which is an advance capitalisation of their entire fund value ahead of their alternative investment fund being established, the client must provide an available cash liquidity availability of an average of €3 million as an entry level to an SBLC of € 200 million. This detail can be discussed with the IWG Account Manager or an appropriate Senior Executive of IWG at the time of an SBLC application. This is a separate consideration to the SBLC Calculator which considers IWG as collateral and not the client. IWG will act as collateral for the SBLC and not the client or their assets which is a separate option not included in the calculator below.
- Financial SBLC: Guarantees the fulfilment of a financial obligation, such as a loan repayment or payment for goods and services. It acts as a backup payment method that is drawn upon if the applicant fails to make a required payment.
- Performance SBLC: Guarantees the completion of a contract's non-monetary obligations, such as a project being finished on time or according to specific quality standards. The bank will compensate the beneficiary if the applicant fails to meet these performance criteria.
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Thank you
Integer Wealth Global.
This value reflects the 80% of the 'Target to first distribution' which is the first value that the client can draw down on from their fund, and is reflected in the section '4' of the prospective mandate. The remaining 20% must remain in the fund for liquidity purposes