Safe Keeping Receipts, or SKR’s, are banking instruments that are increasing 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 asset skr that can be monetized:
• SKR leather
• Collectible SKR art
• Golden SKR
• Assets above ground SKR
• SKR commercial property
• Antiques SKR
• Valuable documents from SKR
• Precious metals or SKR gems
The issuer of the SKR is not the legal owner and therefore must return the asset to the owner upon request. Who can get an SKR? Individuals, corporations, businesses, organizations, and trusts, to name a few. The owner of an SKR can monetize this instrument in much the same way as an SBLC, LC, Bond or BG and use these funds as an alternative source of financing for projects. Most SKRs issued are capable of SWIFT transfers; however, some may require an additional MT 760 concurrent with the transfer of funds in the transaction.
Monetize and SKR is the process of converting the financial instrument into a legal tender transaction. Depending on the monetizing bank, certain additional conditions may apply. For example, is the asset free and clear, which means; Is the title free and clear in the SKR? Aside 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, generally for a period of 1 year and 1 day, unless otherwise agreed, the escrow receipt is completed to the originating issuer.
With these crucial points in place, monetizing your escrow receipt can be a safe transaction because in most circumstances, it doesn’t move your asset or give up control. Any fees associated with monetizing your SKR must be paid out of income and not up front. For many reasons, you should never make arrangements with SWIFT or transfer your SKR to anyone or company without first having a valid contract or knowing the company you are dealing with. Monetizing your SKR can be a solution to alternative conventional financing.