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What is a Bank Guarantee?

            A bank guarantee often referred to as BG is a guarantee from a lending institution ensuring the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank covers it.

 

We can simply say that a bank guarantee is a promise from a bank or other lending institution that if a particular borrower defaults on a payment, the bank will cover the loss. Note that a bank guarantee is not the same as a letter of credit.

Need a Bank Guarantee from HSBC, Barclay's Bank or Credit Suisse?

           Just because these top-rated banks do not know you enough, they may be reluctant to issue a guarantee directly to you which is why we continue to be a linking bridge between you and these banks making it possible for you to either lease a bank guarantee to be issued in our name or purchase a fresh cut bank guarantee to be issued in your name.

Even though a leased or purchased bank guarantee is valid for business, leasing a bank guarantee costs 4% of the amount on the bank guarantee generally known as the face value and cannot be monetized, while purchasing costs 30% and can be monetized.

Brokers benefit 2% of the bank guarantee face value on each issuance

How can I get a Bank Guarantee?

  1. Send us your Customer Information Sheet, Preferred Verbiage, Passport copy and Company Registration/Incorporation Certificate for Due Diligence and Verification,

  2. Upon Approval, we send you a Deed of Agreement, (DOA),

  3. Send us the signed contract and your portfolio reservation payment receipt,

  4. Our bank sends you Pre-Advice RWA MT799,

  5. Our bank sends you a Bank Guarantee MT760,

  6. You either remit the leasing/purchasing cost or we monetize the Bank Guarantee (only purchased Bank Guarantees can be monetized).

 

We only monetize purchased Bank Guarantees at 60% LTV

How can I monetize a Bank Guarantee?

For Bank Guarantees provided in-house,

 

  1. Fill a Deed of Agreement, (DOA),

  2. Within 10 working days, we monetize your Bank Guarantee,

  3. Within 3 banking days, we pay you 60% of the Bank Guarantee total value.

For Bank Guarantees from third party providers,

  1. Send us a scanned copy of the Bank Guarantee, the Company's Certificate and the representative's Passport copy and for Due Diligence,

  2. We send you a Deed of Agreement, (DOA),

  3. Send us the signed contract and your portfolio reservation payment receipt,

  4. Within 10 working days, we monetize your Bank Guarantee,

  5. Within 3 banking days, we pay you 60% of the Bank Guarantee total value.

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