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.
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.
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.