The Standby Letter of Credit or SBLC as well as the Bank Guarantee (hereafter 'Bank Guarantee') is a payment guarantee generally issued by a bank (the issuing bank) on behalf of a client (the applicant) securing payment to a third party (the beneficiary) for the case that the client fails to fulfill a contractual commitment.
Bank Guarantees demonstrate the client's repayment abilities and prove his solvency and credit worthiness towards his business partners.
Bank Guarantees are facilitated in international trade transactions, as collateral and as credit enhancement instruments. The use of Bank Guarantees is advantageous for companies that do not want to stake own equity.
The firm provides all types of Guarantees accepted in international practice:
• Payment Guarantee
Issued under the Buyer's instruction in favor of the Seller. Provides execution of the payment obligation by the Buyer under the contract.
• Advance Payment Guarantee
Issued under the Seller's instruction in favor of the Buyer for advance payment. Provides return of the sum in case goods are not delivered.
• Performance Bond
Issued under the Seller's instructions in favor of the Buyer as a guarantee of proper fulfillment of contract obligations by the Seller.
• Tender guarantees
This type of guarantee is generally an obligatory condition to participate in tender.
• Credit Guarantee
Provides credit funds.
• Customs Guarantee
- Standby Letter of Credit (SBLC)
- Bank Guarantee (BG)
- Proof of Funds (PoF)
- Documentary Letter of Credit (DLC)
Our standard specification of instruments:
Face Value: starting at USD 250,000
Term: 6 Months or 1 Year (extendable)
Delivery: SWIFT or paper form
Confirmation: Verification by SWIFT
A further follow up of your request will ONLY be possible after you have sent an statement of account, which shows that you have the necessary amount available to settle the fees.
Bank Guarantees provided by the firm are designed to protect your commercial interests by eliminating the need to prepay for products or services or to put up collateral with your bank. They are helping to reduce your risk and support your cash flow.
GENERAL PROCEDURE TO APPLY FOR A BANK INSTRUMENT
1. The applicant sends his application for review.
2. Once approved an Agreement is entered into by the firm and the client.
3. Upon signing of the Agreement the applicant places the fee either into the escrow account of a reputable law firm or directly with the issuer.(The fee is only due upon fulfillment of the Agreement.)
4. The bank instrument is issued and delivered to the beneficiary.
5. The escrow agent or the issuer respectively disposes of the fee in accordance to the Agreement
**SCHEDULE OF FEES
Bank Guarantees / Standby Letter of Credit
Validity from 6 months up to 1 year (plus 1 day)
10,000,000 up 2%
Letters of Credit Proof of Funds
Validity 3 months Validity 1 month
Up to Up to:
500,000 4% 1,000,000 3%
1,000,000 3.5% 5,000,000 2%
2,000,000 3% 10,000,000 1,5%
5,000,000 2% 10,000,000 up 1%
**.50-1% consultant fee will be added
email@example.com for a detailed assessment of your business needs.