BANK GUARANTEE BG - SBLC
|ABOUT BANK INSTRUMENT (BG – SBLC – LC ) – PREMIUM BANKS|
We can provide the Bank Guarantee from €10 Million to €5 Billion Euros for 1 year, extendable to 5 years
Where we use the Bank Guarantee : BG, SBLC?
Bank Instrument Type: Standby Letter of Credit (SBLC) Cash AccountBank Guarantee (BG)
|Bank Instrument Institutions:Top Money Center Bank: HSBC, Deutsche Bank, Credit Suisse, Standard Charter.International Banks: United States, Switzerland, French.|
Bank Instrument Term : Minimum €10 million euros up to €5 Billion euros
Bank Instrument :Unlike traditional Letter of Credit, a bank instrument is where the beneficiary obtains payment against papers demonstrating delivery, The SBLC may allow the beneficiary to obtain payment from a financial institution even when the applier for the credit has neglected to perform as per bond, a key principal with this instrument is bank deal only with documents or good, and the bank do not involve themselves in the commitments or contracts between the two parties directly, the advantage of this system is the bank don't check the reliabilities of the project. The concern of the issuing bank is the term and the condition of the credit itself. The decision of the Bank Instrument is based entirely on whatever the documents submitted to the bank appears on their face to comply with the term of LC Bank Instrument.
Bank Guarantees (BG) Bank Instrument:Bank Guarantees (BG) is a negotiable financial debt bank instrument made by a guarantor bank on behalf of the applicant to mitigate risk on behalf of the beneficiary party; it may be used to assist in Trade Finance, International Trade, Domestic Trade, and various other types of contracts where the backdrop of a vetting third-party (the issuing bank) could be used. When a bank issues a letter of guarantee to a beneficiary, it looks at the credit worthiness of the applicant. Not the transaction at large. Thus the ability to acquire the bank instrument like a BG is largely based on the relationship of the bank with its client.
The BG is very similar to the LC; it guarantees the payment to the beneficiary. However, a BG is usually used in the event there is default. If for instance, a purchaser of goods issues a BG to the seller, and if after a delivery, the payments were not made for some or the entire contracted amount, these bank instruments acts like a draft or check allowing the beneficiary to cash in it.
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