ZTI Invest GmbH
ZTI Invest GmbH is the owner of SKR for Nickel Wire deposited in Germany. Our SKR is free from other commitments.
We are looking for solutions for monetizing this instrument, much like a SBLC, Bond or BG, and use these funds as an alternative funding source, as a Proof of Funds (POF) or participate in the Private Placement Program (PPP).
Please get in touch with us to discuss how we can cooperate in this field.
What is financial instrument?
Financial instruments are contracts between individuals that have monetary value.
People make transactions according to their needs. Any asset that has capital is a transaction midwife that needs financial instruments.
Some examples of financial instruments :
- Cheques
- Shares
- stocks
- bonds
- futures
- options contracts
What is considered a financial instrument?
Financial instruments are contracts for monetary assets that can be :
Created
Purchased
traded,
modified
settled
In terms of contracts.
there is a contractual obligation between involved parties during a financial instrument transaction.
Which is not a financial instrument?
intangible assets
inventories
prepaid expenses
gold
right of use assets
deferred revenue
warranty obligations
What is a financial instrument in accounting?
A financial instrument is an investment that confers on its owner a claim on the income or change in value of the issuer or some underlying component of the instrument.
It can usually be traded or thereby allowing for the efficient transfer of capital between investors.
Understanding Financial Instruments:
Financial instruments can be primarily classified into two types:
cash instruments
derivative instruments
Cash instruments: instruments which can be transferred and valued readily in the market.
Some of the most common examples of cash instruments are deposits and loans where the lenders and borrowers are required to be agreed upon
Derivative instruments:It can be defined as instruments whose characteristics and value can be derived from its underlying entities such as interest rates, indices or assets, among others. The value of such instruments can be obtained from the performance of the underlying component. Also, they can be linked to other securities such as bonds and shares and stocks.
Types of financial interument:
- SKR
- SBLC
- LC
- BG
SAFE KEEPING RECEIPT (SKR):
In this case, the property owner decides to hand over his assets to a representative. That representative is usually a bank or financial institution.
The trustee gives a confirmation to the owner.
A contract is also concluded
The owner can send a confirmation to a third party that these steps sometimes cost.
Financial instruments are monetary contracts between parties.
- Created
- Traded
- Modified
- Settled
They can be cash, evidence of an ownership interest in a contractual right or entity to deliver or receive. Form of:
Currency
Debt (bonds, loans)
Equity (shares)
Derivatives.
The various assets that can be held in such arrangements range from:
Shares
Bonds
Real Estate,
Precious Metals
Oil and Natural Reserves
Among others
STANDBY LETTER OF CREDIT (SBLC):
When the bank issues a legal document on behalf of the customer and guarantees payment to the seller, if the buyer does not commit, this process is called SBLC.
This type of contract is mostly in foreign and international transactions where the parties do not know each other.
The documents have network credit and assure the seller that if the buyer does not pay for the services or goods provided, the bank will pay the fee.
BANK GUARANTEE (BG):
A Bank Guarantee (BG) guarantees a certain sum to the beneficiary if the opposing party doesn’t fulfill its specific obligations under their agreed upon contract.
It ensure both sides in a contractual agreement from credit risk.
Both of them should have to issue Bank Guarantees (BG) in order to prove their credit-worthiness to each other.
Letter of Credit (LC):
A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
If the buyer is unable to make a payment on the purchase, the bank will remaining amount of the purchase or be required to cover the full (It may be offered as a facility)
The nature of international dealings or including factors:
Distance
Differing laws in each country
Difficulty in knowing each party personally
use of letters of credit has become a very important aspect of international trade.
