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Corporate Services

Leasing Bank Guarantee or Standby Letter of Credit is where a Provider agrees to utilise his assets to the benefit of a third party, namely the Beneficiary through a Collateral Transfer Agreement and involves the 'transfer' of the original asset (the 'collateral') into a new security that the Beneficiary can utilise. Hence the term "Collateral Transfer".
This is done by the Provider of the original or underlying asset pledging the asset to the facility bank (the Issuing Bank) in order that the Provider can instruct the remittance of a Bank Guarantee or Standby Letter of Credit (SBLC) to the Beneficiary and his Recipient Bank. The Bank Guarantee or SBLC that results can be used in any way by the Beneficiary. The underlying asset pledged to the Issuing Bank may be cash, bonds, stocks, gold or other assets (or often a combination of many) and is provided by the "Provider". The Provider can be a private equity or investment group or a collateral management company making investments on behalf of its clients(investors seeking to make good returns on their assest who entrusts their assets with the Provider) . The Provider will often receive the assets through private label funds set up for the purpose, or from hedge funds, pension funds or high net worth individuals and will use his bank relationship to pledge these assets to the Issuing Bank to have them issue a Bank Guarantee or SBLC to the Beneficiary for a given term (usually 1 year and 1 day renewable terms).

Leasing Bank Guarantee and Standby Letter of Credit can be used for a variety of purposes as follows:
Raising Loans and Credit Lines
Security for other credit facilities such as trade finance
Surety and other third party financial commitments
Trading and overdraft security

Bank Guarantees or Standby Letter of Credit received under Collateral Transfer facilities may be used by the Beneficiaries to secure credit lines at their bank. Typically, the beneficiary's bank will have no objection to offering credit against Bank Guarantees received in this manner up to 100% of face value, less of course advance interest charges and bank fees. However, typically lending rates (loan to value or LTV) will be around 80% to 90% of face value of the Bank Guarantee or Standby Letter of Credit in question.
The Bank Guarantees or Standby Letter of Credit that are issued under these types of facilities are worded specifically to secure credit lines. They are issued under ICC758 protocol and are readily accepted by all international and private banks.
It is important to note that although the Bank Guarantee or Standby Letter of Credit is obtained through a lease agreement (collateral transfer), this has no bearing on the quality of the Bank Guarantee or Standby Letter of Credit and can still be used to raise credit and loans. As the verbiage of the instrument will be ICC758 standard approved wording, there will be no mention of 'lease' within the instrument itself. Remember, 'leasing' is a misnomer and is never a phrase used in these facilities.

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Fees and Compensation

Please refer to the “Advisory Business” section in this brochure for information on our advisory fees, fee deduction arrangements, and refund policy according to each service we offer.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory services are separate and distinct from the fees and expenses charged by mutual funds or exchange traded funds (described in each fund’s prospectus) to their shareholders. These fees will generally include a management fee and other fund expenses. You will also incur transaction charges and/or brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by the broker-dealer or custodian through whom your account transactions are executed. We do not share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or custodian. To fully understand the total cost you will incur, you should review all the fees charged by mutual funds, exchange traded funds, our firm, and others. For information on our brokerage practices, please refer to the “Brokerage Practices” section of this brochure.
Compensation for the Sale of Securities or Other Investment Products
Persons providing investment advice on behalf of our firm are registered representatives with Mutual Securities Corporation, a registered broker-dealer, and a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. In their capacity as registered representatives, these persons will receive commission-based compensation in connection with the purchase and sale of securities, including 12b-1 fees for the sale of investment company products. Compensation earned by these persons in their capacities as registered representatives is separate and in addition to our advisory fees. This practice presents a conflict of interest because persons providing investment advice on behalf of our firm who are registered representatives have an incentive to effect securities transactions for the purpose of generating commissions rather than solely based on your needs. However, you are under no obligation, contractually or otherwise, to purchase securities products through any person affiliated with our firm.
Persons providing investment advice on behalf of our firm are licensed as independent insurance agents. These persons will earn commission-based compensation for selling insurance products, including insurance products they sell to you. Insurance commissions earned by these persons are separate and in addition to our advisory fees. This practice presents a conflict of interest because persons providing investment advice on behalf of our firm who are insurance agents have an incentive to recommend insurance products to you for the purpose of generating commissions rather than solely based on your needs. However, you are under no obligation, contractually or otherwise, to purchase insurance products through any person affiliated with our firm.

Performance Based Fees
We do not accept performance-based fees or participate in side-by-side management. Side-by-side management refers to the practice of managing accounts that are charged performance-based fees while at the same time managing accounts that are not charged performance-based fees. Performance-based fees are fees that are based on a share of capital gains or capital appreciation of a client’s account. Our fees are calculated as described in the Advisory Business section above, and are not charged on the basis of a share of capital gains upon, or capital appreciation of, the funds in your advisory account.

Allen Financial Management:

 Our Mission is to To provide our customers superior financial planning and investment management services, fostering opportunities for wealth and portfolio growth, while providing potential for social and economic returns for our clients.

Tel: +2485724731
Address: 1120 S. Lapeer Road, Oxford MI 48371


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