Monetization & Process for Hard Assets
An overview of the monetization process for hard assets and the parameters required to be eligible for consideration by a trading platform.
The Client with the Asset
The Client has to provide boomfii.com with all relevant paperwork for the asset, boomfii.com will then carry out the due diligence necessary on the Client.
If the Client passes this process, Boomfii.com will then forward details to a monetizer for review and their deep-dive due diligence. If successful, the monetization process begins.
Monetizers and their Role
The monetizer will produce a loan-to-value statement depending on the value of the asset to be monetized.
The monetizer will expect the loan-to-value to be paid back over a period of 40 weeks and will charge between 20% to 35% of the weekly traded profit to recover the debt, their costs, and the costs of setting up the debt.
The monetizer is typically a UHNWI, family office, bank, or another commercial entity that has a lot of surplus cash.
Monetization Process
The monetizer will set up a fund depending on the line of credit available to them.
The monetizer will then assess the value of the asset and will grant a loan of approx. 50% to 70% as a loan (LTV)
This depends on the quality of the paperwork presented and subjectively if the monetizer feels the client is honest and trustworthy with the loan.
The monetization depends on the quality of the paperwork and the Clients fast response and working with the monetiser can take between 3 to 8 months.
Platform and its Duties to the Monetizer
Once the monetizer has issued their offer they will then want the funds to be traded. The monetizer will prefer to manage the trade of the cash through their own sources
Or, they will suggest a monetizing platform that will then trade the funds on behalf of the Client and the monetizer. Such as HSBC, JP. Morgan, Wells Fargo, Deutsche Bank, and several others.
The platform chief intake officer will want to have a direct one-to-one conversation as the conversation is highly confidential no one else will be included.
The platforms used are part of the major banks of the world excluding banks in China and Russia. (Tier one banks).
The platform will produce a return that may be 100%, or which will have bullets attached to it, bullets are a way of enhancing the funds to be traded.
The platform will require the funds to be locked down by using a SWIFT document either the preferred MT760 or the MT799. The reason for the lockdown is to stop the Client from taking the money out during the process which will cause the agreed contractual amounts to be underfunded - this will collapse the trade. That is why the monetizer will allow the Client to take up to 20% of the loan for their own use, (from which commissions will be expected to be paid) with the net amount going into the trade.
The amount generated will then be sent to a paymaster who will distribute the funds in accordance with the client’s signed agreement. The paymaster instructions will be completed by boomfii.com and returned to the client for their signature.
The time period for a trade is normally 52 weeks plus one day of which the Client will receive an amount over 40 weeks or 10 months depending on the platform. The platform will use the last 12 weeks for their fees and costs and will pay out to institutions such as the United Nations, the Red Cross, etc.
The funds (if they are hard assets there will be a charge over these assets requested by the Platform) do not leave the Client’s bank account as it is locked down, at the end of the 52 weeks and one day the assets used to generate the funds will be released back to the Client.
Paymasters & their Duties
The paymaster is a business affiliated with a major bank either in Europe, the United States, or Singapore.
The platform cannot send money directly to the Client as it breaks regulatory rules and the paymaster is seen as an independent person paying the funds out.
The paymaster will only act on completed Client instructions to pay, and this includes the repayment of the monetizer loan and commissions to the arrangers and managers.
Repayment and Overall Timeline
The overall timeline.
- Monetization approval can take up to 8 months, normally no more than 3 months but this is dependent on the background and paperwork of the Client.
- Trading, 52 weeks and one day.
- Paymaster payments to the Client for 40 weeks (The PPP cycle).
Approved Tier One Banks
PLEASE NOTE: The Process and returns can vary but the overall structure remains the same.
DISCLAIMER: The above is without solicitation. The information is for educational purposes only and by no means a guarantee of any future financial gains should a Client enroll in this monetization process to be eligible for a PPP Trading Programme.