In the monetization process, a leased standby letter of credit is utilized as collateral to successfully get funding or credit. A financial institution grants the bearer a short-term secured bank loan (SBL), which is then used as collateral to get funding from another institution. Monetization is the process of using the leased SBLC monetization to get credit lines or funding without having to liquidate the instrument itself. This approach provides financial growth opportunities and flexibility by enabling the holder to access credit or liquidity based on the SBLC's value.
