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Alan Jones Financial Services Limited l Copyright © 2005 - 2019 l All Rights Reserved             

Address: Marlan, Spittal, Haverfordwest, Pembrokeshire, SA62 5QP, United Kingdom                                                                                                                                                                    Email: contact@alanjonesfinancial.com

                                                                                                                                                                                                                                                   

 
Bank Guarantee (BG) / Standby Letter Of Credit (SBLC)

A Bank Guarantee (BG) / Standby Letter Of Credit (SBLC) is an unconditional undertaking given by the bank on behalf of our client that their liabilities will be met in the event that they fail to fulfill their contractual obligations.

Types Of BG/SBLC We Issue

BG/SBLC is a type of collateral that can be used in managing various kinds of risk. BG/SBLCs are classified by the kind of risk they cover. We can issue any type of BG/SBLC as below:

  • Payment Guarantee: A payment guarantee is used to guarantee the seller that the buyer will fulfill its payment obligations as stated in the contract.

  • Tender Guarantee: A tender guarantee (bid bond) is used for participation in international tenders, such a guarantee covers the organizers’ expenses in case when a participant revokes its bid or does not accept the offer.

  • Performance Guarantee: A performance guarantee is used to strengthen the contractual relationship between a buyer and a seller. It guarantees compensation of the agreed-upon amount in case the delivery terms or other contractual obligations of the seller are not fulfilled as agreed upon in the contract.

  • Advance Payment Guarantee: An advance payment guarantee is used when the contract provides for advance payment to be made to the seller, and it guarantees that the advance payment will be returned to the buyer if the seller does not fulfil its obligations on delivery of goods or services.

 

Our BG/SBLC Description

Format: URDG 758 / ISP98

Term: Fresh Cut, Cash Backed

Validity: One (1) Year And One (1)

Face Value: 1M - 10B

Currency: USD/EUR

Issuing Banks: Top Rated Banks

Lease Price: 5%

Purchase Price: 35%

Agent's Commission: 1%

Procedure

1. After due diligence, Lessee/Buyer and Provider sign agreement.

2. Within two banking days, Issuing bank sends RWA Letter to receiving bank and Provider sends Invoice for payment of bank charges and Corporate Refund Undertaking Letter to Lessee/Buyer.

3. Within two banking days, Lessee/Buyer remits payment for the bank charges.

4. Within two banking days, Issuing bank sends SWIFT MT799 (Pre-Advise) to receiving bank.

5. Within two banking days, Issuing bank send SWIFT MT760 to receiving bank.

6. Within two banking days, Provider issues invoice for lease/purchase fees to lessee/Buyer.

7. Within fifteen banking days, Lease/Buyer remits payment for the lease fee including agent’s commission (if agents are involved).

8. Within fifteen banking days, Issuing bank delivers hard copy to receiving bank.

 

Have any questions?                               and we'll be in touch with you within 1 working day.