Leader in Documentary Letters of Credit
With Hong Kong Shangai Bank – Hsbc
Financial Instrument means a real or virtual document representing a legal agreement involving some sort of monetary value. In today’s financial marketplace, financial instruments can be classified generally as equity based, representing ownership of the asset, or debt based, representing a loan made by an investor to the owner of the asset. Foreign exchange instruments comprise a third, unique type of instrument. Different subcategories of each instrument type exist, such as preferred share equity and common share equity, for example.
WHAT CAN WE DO WITH FINANCIAL INSTRUMENTS FOR CREDIT?
First of all obtain credit
You can obtain credit from banks (using the financial instruments BANK GUARANTEE as garantee for the possibile financing that bank will provide.You can obtain credit from privat, and this is the LETTER of CREDIT, which are postponed paying instruments (you get the letter of credit to supplier with i.e. 30 days deadline, and he will send you the goods immediately). You can issue minibond countergaranteed by special bank financial instruments to strenght recourse at credit. Or, to make it easy, you can issue promissory notes with the countergarantee of a bank, and utilize those shares to obtain credit in whatsoever form (both paying goods and ensuring loan).
Financial Instruments for Credit can be widely used and obviously must be specially designed for the specific needs of customers; that means that you should never forget that preliminary studies of case that customer brings you, is, as professional, the most important part to do.