The term “bank guarantee” has no precise definition, particularly in international law. Some use the term exclusively to describe a transaction in which one party makes an independent guarantee commitment in respect of another party’s liabilities, regardless of the latter’s form and enforceability. Others describe guarantees as all transactions in which security is offered; from letters of comfort (which often are morally binding at most) to surety bonds and abstract payment undertakings.
A Bank Guarantee can be described as a Letter of Guarantee issued by one bank to another bank to guarantee the performance of an obligation on the part of the applicant, guaranteeing the beneficiary.
A Bank Guarantee is where one Bank (the Issuing Bank) issues an indemnity to another Bank (the Beneficiary Bank) or directly to a Beneficiary, on behalf of its account holder. The Issuing Bank will expect its account holder to pledge ‘assets’ to the bank for its issue.
Bank Guarantee’s take many forms.
Some Guarantees are written to guarantee rental payments, some are written to guarantee payments upon the meeting of certain conditions. Some are even issued to guarantee loans and credit lines. All of them are written for a specific purpose to a specific party.
Each Bank Guarantee will be worded for the purposes it is intended. Some may be ‘callable upon demand’ or some may only be ‘callable’ when the Beneficiary provides notice of satisfaction of a pre-determined condition.
Currently, under the new Uniform Rules for Demand Guarantees (URDG 758) an underlying contract should be provided that states clearly the purpose of the Bank Guarantee and forms part of the Guarantee, for example a Rent Agreement or Payment Obligation.
In international trade dealings, buyers and sellers often experience problems of trust within each other to honor their payment obligations. A seller may find it difficult to ascertain the buyer’s willingness and ability to make payment, whilst the buyer may not be convinced that the seller genuinely intends to perform his side of the agreement or has the necessary financial and technical resources to do so. Just as the buyer needs protection against non-performance, so the seller will want to minimize or insure against the risk of non-payment. Documentary credits are generally used in such cases, yet various other forms of bank guarantees are available.
The common element in all these arrangements is that the guarantor undertakes to be answerable for the payment of a debt or the fulfillment of a payment obligation in the event of default by the party that is responsible for it.
Ming Fong Finance Company Limited are direct provider of bank Guarantees (BG), SBLC, DLC and All other types of Letters of Credit. We are legally registered Financial Firm with good reputation. We only work with Top Prime rated global banks.
We deliver with time and precision as set forth in the Deed of Agreement (DOA). All our customers can engage our leased bank instruments into trade programs, Business expansion projects, Aviation projects, Agricultural projects, Petroleum/Oil/Gas, Telecommunication, Construction Projects and any other turnkey project. Our terms and Conditions are reasonable.
DESCRIPTION OF INSTRUMENTS:
- Instrument: Bank Guarantee (BG)/SBLC
- Total Face Value: Eur/Usd 1M MIN and Eur/Usd 50B MAX).
- Issuing Bank: HSBC, Barclays Bank, Standard Chartered, Citibank or AA rated Bank in Western Europe or USA.
- Age: One Year, One Day
- Leasing Price: 4% of Face Value plus 2% brokers commission (only if there is a broker involved in the transaction)
- Delivery SWIFT TO SWIFT.
- Payment: Wire Transfer.
8.. Hard Copy: Bonded Courier within 7 banking days.
Yiu Fung Finance Company Ltd is a leading Financial Services provider that is headquartered in Hong Kong to provide Non Recourse Loans, Business Loans, SME Loan, Investment Loan, Project Financing, Bank Guarantees, SBLCs, Letters of Credit, Monetization of BG/SBLC and funding for all kinds of viable projects locally and internationally.
OUR SERVICES ARE:
- Loans: (Non Recourse Loans, Business Loans, Secured Loans, Unsecured Loans, International Project Financing)
- Purchase Bank Instruments (Bank Guarantees and Standby Letter of Credit)
- Lease Bank Instruments (BG, SBLC, DLC, Letters of Credit)
- Letters of Credit (DLC, L/C, Usance LC)
- Investments and Wealth Management
- Insurance Underwriting Services
- PPP and Trading Platforms
- Corporate Finance
BROKER INQUIRIES ARE WELCOMED AND APPRECIATED: Our brokers receive 2% commission for referral. Daisy Chains of Brokers, Scammers & Time Wasters Will Not Be Entertained. We assist Clients and brokers in their attempt to secure funding by working on their funding requests that may require innovative financing.
We would welcome the chance to earn your trust and deliver you the best financial service in the industry. Have a look at some of our recent projects here: https://yiufungfinance.blog/projects/
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