Letter of Credit, Bank Guarantee Faciltiy

Listing ID #1120080

We arrange l/c & bg facilities from various banks and with the minimum securities and cash margins at the lowest possible rates. \r\n\r\nletter of credit (l/c) & bank guarantees (b/g) are different financial facilities that are offered by banking institutions. Here, a bank guarantee is a type of banking arrangement where bank substitutes its creditworthiness for that of the customer. It is a contingent obligation meaning “depending on happening of an event, which may or may not occur” with 99% of time its not paid as event does not happen. Always issued on behalf of its customers, the final liability also always falls on the customers. \r\n \r\nbank guarantee consists of a bank/financial institution offering to repay a debtor’s liabilities in case the debtor fails to do so. We provide bank guarantee services for companies operating in various industries. We provide bank guarantee services in a timely manner, while saving the clients from complicated paperwork. A bank guarantee can be issued by us for a period of one year and one day (minimum being 6 months) and can be extended till the time period of five years. Our bank guarantees are completely lienable, assignable and authenticated. \r\nOne common type of bg is performance-related where bank tells beneficiary if customer does meet the defined obligations, the bank will pay like issuing bg to shipping company for release of goods without bills of lading or substituting for cash payment. Further, bank guarantees are also issued for financial reasons like mncs from a particular country wanting to borrow from bank for its subsidiary in another country. In all bank guarantee is banks assurance to guarantee the loan. \r\n\r\nstandby letter of credit (sblc) works as non-fund based financial assistance that is provided to customers through leverage of credit line from bankers using letter of credit (lc) facility. Lc is extended to customers with appropriate cash margin.