How Custodial Bank Safe Keeping Receipt (SKR) Drives Growth

How Custodial Bank Safe Keeping Receipt (SKR) Drives Growth

There's always scope for something innovative happening around in the finance sector, and custodial bank safekeeping receipt (SKR) is one of those financial instruments. In today's age, business is about utilising resources or assets to the optimal level. The introduction of safekeeping receipts has offered business owners an opportunity to have their assets secured by a reputed financial institution and use SRKs to fund business projects at the same time. The closest example is a Standby Letter of Credit. Banks, on the other hand, offer cash against the valuable assets to respective owners. The credibility aspect makes a lot of sense, given the worth of assets placed under storage.

1. Custodial Bank Safe Keeping Receipt (SKR) and Project Funding Not long ago, business units were denied an opportunity due to the absence of financial instruments such as custodial bank safekeeping receipt (SKR). The traditional financial instruments lacked the client-centric approach. These receipts work similarly to how the traditional model works. Your assets are protected by the bank. You don't lose ownership and keep account of the assets all the time. Individuals and companies can utilise the instrument and fund their projects. It's how the whole transaction pans out that wins the confidence of modern business owners and entrepreneurs.

The whole system is straight forward, and it saves you a lot of time, paperwork. These instruments serve a specific purpose. It entertains the queries of individuals and professionals who want to start a business, but they don't want to follow the old-school model. There is no upfront fee or charges in order. Banks manage every single aspect related to issuing a receipt against the assets.

Your role is to take the receipt, learn about the process and start focusing on business.

2. Custodial Bank Safe Keeping Receipt (SKR) and Monetisation How safe is it to monetise the custodial bank safekeeping receipt (SKR)? It is one of the best options for alternative financing in the market. As a business owner, you've complete authority to go ahead and monetise the safekeeping receipt. It's the homework you need to do, before making the arrangements where you stand a chance to lose and make a grave error in judgement.

The risk factor comes back to bite or haunt at the failure to verify the bank or read the documents carefully. You should either research on some of the top-rated banks dealing in safekeeping receipts or hire the services of a professional equipped with the knowledge, expertise to guide you in the right direction. Your assets are your life's work. You don't want to hand it over to an institution without running a background check first and then monetising them knowing the ins and outs of the deal.