KinerjaPay Corp (fka KPAY)

[Anvil]

What? Mostly wrong. The cheapest way for the issuer to fund KinerJaPay is direct. Eliminates banks all together.

Next cheapest is for the lender to guarantee a credit line with their bank to KinerJaPay. Often done as a accommodation with terms on par with the issuers other credit facilities. And that is not 2 points per annum and a credit spread.

The most expensive way is issue a bank guarantee/letter of credit, what you refer as some swift number that most corporate finance never heard of. Must be a trade finance department thing.

And to boot, this scam says HSBC is issuing the guarantee, but it doesn’t have a relationship with the Indonesian bank, so the Swift MD whatever has to go through a correspondent bank? Beside the additional cost, if HSBC does not have a correspondent relationship with an Asian bank, that bank should not be dealt with.