Guarantees

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Guarantees

A financial guarantee is a promise or guarantee given by a guarantor (financial/Assurance institution) to take responsibility for the borrower in the case of default in payments to the lender or investor. Generally, insurance companies give a guarantee to back the debt of large corporations (the borrower) in payments to the market (the lender).

What type of Guarantees

So what type of financial guarantees are there? There are several types of guarantees, such as Corporate Financial Guarantees (Letters of intent (LOI) a banking or Assurance institution can also ask for cash deposits as securities, etc), Personal Financial Guarantees (can be a person giving a guarantee for a loan to a person or a company) Guarantees are used and pulled by the leader if the borrower can not pay the debt and defaults. (sometimes there are time limits on the guarantees)

GUARANTEE SERVICE

Our first goal with our guarantee service
is to secure your goals as a company, and
as our client to succeed.
Therefore you will get a lot of support from
our staff to succeed

How to get a Guarantee

How to get a guarantee

Application

Fill out and return the Bank Guarantee (BG) application with the documents for your deal. (Contract, Agreement, etc.)

To make the application and get the Guarantee, you need to go through the steps as described.

  • Contact us for a complete list of documents needed.
  • Find and verify the documents needed.
  • Send the required documents to us for documentation.

What do we need from you

What is needed from you?

Documentation

Which documentation is needed?
It depends on what the Guarantee is for,
but it could be a business plan, budget,
cash flow, board resolution, and what the
guarantee is needed to be used for.

Draft sample

A draft of the Bank Guarantee (BG) will
be created for you and your beneficiary
to review.

The last steps

Release of Bank Guarantee

Last stage

  1. You sign off the draft between you and your beneficiary
  2. You are issued a payment invoice for the Guarantee.
  3. When we have received your wire payment, the Bank Guarantee (BG) will be released to the bank for issuance and delivery.

Release of BG

The bank will usually issue the Bank Guarantee (BG) within 2 working days of release.

A copy of the BG will be emailed to you as it is transmitted by an MT760 SWIFT message to the beneficiary, including the reference number of the BG when it has been issued.

It will then be able to be verified by the seller’s bank soon thereafter.