ISSUING OF FINANCIAL INSTRUMENTS
By acquiring a Swiss Trust Company, a client can begin issuing Letters of Credit, Safe Keeping Receipts, Promissory Notes, Loans and a vast variety of other instruments. Depending on a company’s business model, these could be used to reduce fees for personal gain, or be passed on to clients at a charge.
If a client requires an instrument with a higher investment-grade rating, they may use a correspondent banking relationship to obtain these services at a substantially lower cost and in a faster timeframe than using traditional means.
Real-World Example:
Imagine a client specializing in R&D for gold mines expresses the following business needs:
- Deposit gold into a bullion bank in return for SKRs
- Start leveraged lines of credit using hard assets
- Increase capital by monetizing in-ground assets
Through acquisition of a Swiss Trust Company, they would be able to implement a business plan in the first 3 months that encompasses:
- Hold the value of assets issued from a company in the form of SKRs
- The ability to borrow up to 80% of their assets’ value
- The ability to monetize up to 5% of in-ground, non-producing assets