BANK GUARANTEES & LOAN FACILITIES
BANK GUARANTEE/STANDBY LETTER OF CREDIT
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.
PFIG 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
Bank Guarantees provided by PFIG 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.
Contact us to for a detailed assessment of your business needs.