Frequently Asked Questions

General Questions

What is the minimum face value for bank instruments?

The minimum face value for our bank instruments is Five Million Euro (€5,000,000.00). This applies to all instrument types including BG, SBLC, MTN, and LC.

What is the maximum face value available?

Our instruments can go up to Fifty Billion Euro (€50,000,000,000.00). We can accommodate large-scale institutional requirements.

Which banks issue your instruments?

Our instruments are issued by top AAA Rated banks including:

Barclays Bank Plc
Deutsche Bank AG
HSBC London

These are globally recognized financial institutions with the highest credit ratings.

What is the tenor of the instruments?

The standard tenor for our instruments is One Year and One Day. This allows for yearly renewal and continuous project funding.

What types of bank instruments do you offer?

We offer the following bank instruments:

Bank Guarantee (BG) - For project guarantees and tender security
Standby Letter of Credit (SBLC) - For collateral and lines of credit
Medium Term Note (MTN) - For institutional investment
Letter of Credit (LC) - For international trade finance

How long does it take to process a $50 million business loan?

The processing time for a $50 million business loan varies significantly depending on the lender type:

Traditional Banks: Typically 2 to 8 weeks (30-90 days) for large commercial loans, with SBA loans taking even longer (up to 90 days).
Factors that add time: Loan size and complexity, due diligence requirements (appraisals, environmental assessments), and incomplete applications.
Pheloan Advantage: Our streamlined process delivers decisions in as little as 5-10 business days. We've optimized our underwriting for speed without compromising on due diligence.

Pro Tip: Having all financial documents ready before applying is the single most effective way to avoid delays with any lender.

Pricing & Costs

What is the difference between lease and purchase?

Lease: Pay 6% of the face value plus 2% commission fees to brokers. The instrument is available for use during the lease period (One Year and One Day).

Purchase: Pay 38% of the face value plus 2% commission fees to brokers. You own the instrument outright.

Are there any hidden fees?

No. All costs are clearly stated in the contract. Our pricing is fully transparent:

Lease: 6% of Face Value + 2% commission
Purchase: 38% of Face Value + 2% commission

Payment is only required after the instrument is delivered and verified.

When is payment required?

Payment is made after the instrument is delivered via SWIFT MT760/MT542 and verified by your bank. This ensures you only pay for a confirmed, verified instrument.

What payment methods do you accept?

We accept Wire Transfer (Swift MT103) for all payments. This ensures secure and traceable international transactions.

Process & Delivery

How long does the process take?

The entire process typically takes 3-5 banking days from contract signing to delivery. Here's the breakdown:

Day 1: Sign contract and process documentation
Day 1-2: Contract processing and KYC/AML verification
Day 2-3: Instrument issued and reserved on Euroclear
Day 3-5: SWIFT delivery and hard copy via Bonded Courier

How is the instrument delivered?

Instruments are delivered through two channels:

Electronic: Bank-to-Bank Swift MT-760 (for BG/SBLC) or MT542 (for MTN/LC)
Physical: Hard copy delivered via Bonded Courier Service within three banking days

Can I get a hard copy of the instrument?

Yes. We provide a physical hard copy of the instrument via Bonded Courier Service within three banking days of the SWIFT delivery. This provides you with official documentation for your records and for presentation to your bank.

What happens during contract processing?

Our legal and compliance team conducts a thorough review including:

KYC/AML Verification: Identity and source of funds checks
Due Diligence: Company registration and financial standing
Compliance Review: Regulatory and cross-border requirements
Internal Approval: Risk assessment and final authorization

This typically takes 24-48 hours to complete.

Instrument Usage

Can I use the instrument as collateral?

Yes. Our instruments are cash-backed and accepted as collateral by any bank worldwide to secure loans or establish lines of credit. This is one of the primary uses of our BG and SBLC instruments.

Can the instrument be monetized?

Yes. Our instruments can be monetized for 100% project funding. We can assist in the monetization process, helping you convert your instrument into working capital for your project.

Can I use the instrument to purchase goods?

Yes. Our Letters of Credit (LC) are specifically designed for this purpose. You can use them to purchase goods from any manufacturer irrespective of their location. This is ideal for international trade and commodity purchases.

Can the instrument be renewed?

Yes. Our instruments are yearly renewable. At the end of the One Year and One Day tenor, you can renew the instrument for another term, providing continuous funding for your projects.

Eligibility

Who can apply for these instruments?

The following entities can apply:

Corporate Entities - Registered companies of all sizes
Project Developers - Real estate, infrastructure, energy
Governments - Public sector projects
Financial Institutions - Banks and investment firms
International Organizations - NGOs and development agencies

What sectors do you finance?

We finance projects across all sectors including:

Real Estate Development - Commercial and residential
Aviation Services - Airlines, airports, and aviation infrastructure
Agriculture Finance - Farming, processing, and export
Petroleum Importation - Oil and gas trade
Telecommunications - Network infrastructure and services
Infrastructure - Dams, bridges, roads, and utilities

Are there any country restrictions?

We serve clients worldwide with a few exceptions based on international sanctions and compliance requirements. Please contact us to discuss your specific country and we'll advise on eligibility.

Payments & Verification

What is SWIFT MT103?

SWIFT MT103 is a confirmation of wire transfer used for payment after instrument delivery. It's the standard international message format for confirming that funds have been transferred successfully between banks.

What is the verification process?

The verification process involves:

Your bank receives the instrument via SWIFT MT760/MT542
Your bank verifies the instrument's authenticity
Copies are sent to you for review
Upon confirmation, payment is arranged

This ensures complete transparency and security throughout the transaction.

Is my payment secure?

Absolutely. We use:

SWIFT Bank-to-Bank transfers for all transactions
Escrow arrangements where required
Verified banks (Barclays, Deutsche, HSBC) for instrument issuance

Payment is only made after the instrument is delivered and verified by your bank.