Custody Receipt (SKR) – Collateral for Alternative Financing

Custody Receipts, or SKR, are bank instruments that are booming as collateral for alternative financing. An SKR is a financial instrument issued by a custodial facility, bank, or storage house. In storage, assets or other valuables are in a safe, secure, and protected area. The issuer of the SKR assumes the responsibility of being the legally responsible custodian. Check with your institution or secure storage facility, as some require fees for these services.

Examples of skr assets that can be monetized:

• SKR skin

• SKR collectible art

• Gold SKR

• SKR land assets

• SKR commercial property

• old SKRs

• Valid SKR documents

• Precious metals or SKR gems

The issuer of the SKR is not the legal owner and therefore must return the asset to the owner if requested. Who can get an SKR? Individuals, corporations, businesses, organizations, and trusts, to name a few. The owner of an SKR can monetize this instrument as an SBLC, LC, Bond or BG and use these funds as an alternative financing source for projects. Most issued SKRs are capable of SWIFT transfers; however, some may require an additional 760 MT simultaneously with the transfer of funds in the transaction.

Monetize and SKR is the process of turning the financial instrument into a legal tender transaction. Depending on the monetizing bank, certain additional conditions may apply. For example, it is the free and clear asset, that is; Is the title free and clear in the SKR? Apart from the validity of the SKR, the free title is the most important aspect of monetization. The next important aspect is the capacity of a SWIFT MT 760. Once monetized, usually for a term of 1 year and 1 day, unless otherwise agreed, the escrow receipt for the originating issuer is completed.

With these crucial points in place, monetizing your escrow receipt can be a safe transaction because in most circumstances, you don’t move your asset or give up control. Any fees associated with monetizing your SKR must be paid with revenue and not up front. For many reasons, you should never make arrangements with SWIFT or transfer your SKR to any person or company without first having a current contract or knowing the company you are dealing with. Monetizing your SKR can be a solution to alternative conventional financing.