Author: kingrisefinance

Categories
Uncategorized

What is Bank Guarantee & Lease BG

What is Bank Guarantee & Lease BG?

What is a Bank Guarantee - Bank Guarantee Providers, Lease Bank Guarantee, Top Bank Guarantee Providers, International Bank Guarantee Providers, Lease BG/SBLC providers
What is Bank Guarantee & Lease BG, Bank Guarantee Providers, Lease Bank Guarantee, Top Bank Guarantee Providers, International Bank Guarantee Providers, Lease BG/SBLC providers

A bank guarantee serves as a promise from a commercial bank that it will assume liability for a particular debtor if its contractual obligations are not met. The bank guarantee signifies a lending institution ensures that the liabilities of a debtor is going to be met. A bank guarantee can also be described as a promise from a bank or other lending institution that if a particular borrower defaults on a loan, the bank will cover the loss. So the bank guarantee serves as a risk management tool for the beneficiary, as the bank assumes liability for completion of the contract should the buyer default on their debt or obligation.

A bank guarantee allows the customer, or debtor, to acquire goods, purchase equipment or draw down a loan. In other words, the bank offers to stand as the guarantor on behalf of a business customer in a transaction. Most bank guarantees carry a fee equal to a small percentage amount of the entire contract, normally 0.5 to 1.5 percent of the guaranteed amount.

Types of Bank Guarantees

Because of the general nature of a bank guarantee, there are many different kinds of bank guarantees:

  • A payment guarantee assures a seller the purchase price is paid on a set date.
  • An advance payment guarantee acts as collateral for reimbursing advance payment from the buyer if the seller does not supply the specified goods per the contract.
  • A credit security bond serves as collateral for repaying a loan.
  • A rental guarantee serves as collateral for rental agreement payments.
  • A confirmed payment order is an irrevocable obligation where the bank pays the beneficiary a set amount on a given date on the client’s behalf.
  • A performance bond serves as collateral for the buyer’s costs incurred if services or goods are not provided as agreed in the contract.
  • A warranty bond serves as collateral ensuring ordered goods are delivered as agreed.

Real-World Example

For a real-world example, consider a large agricultural equipment manufacturer. While the manufacturer may have vendors in many places, it is often best practice to have local vendors for key parts, both for accessibility and transportation cost reasons.

As such, they may wish to enter into a contract with a small metalworks shop that is located in the same industrial area. Due to the small vendor being relatively unknown, the large company will require the vendor to secure a bank guarantee before entering into a contract for $300,000 worth of machine parts. In such a case, the large company will be the beneficiary, and the small vendor will be the applicant.

Should the small vendor receive the bank guarantee, the large company will enter into a contract with the vendor. At this point, the company may pay the $300,000 in advance, with the understanding that the vendor is to deliver the agreed-upon parts in the following year. If the vendor is unable to do so, the agricultural equipment maker can claim the losses resulting from the vendor breaking the terms of the contract from the bank.

Through the bank guarantee, the large agricultural equipment manufacturer can shorten and simplify its supply chain without compromising its financial situation.

Understanding Bank Guarantees

A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. The guarantee lets a company buy what it otherwise could not, helping business growth and promoting entrepreneurial activity.

There are different kinds of bank guarantees, including direct and indirect guarantees. Banks typically use direct guarantees in foreign or domestic business, issued directly to the beneficiary. Direct guarantees apply when the bank’s security does not rely on the existence, validity, and enforceability of the main obligation.

Individuals often choose direct guarantees for international and cross-border transactions, which can be more easily adapted to foreign legal systems and practices since they don’t have form requirements.

Indirect guarantees occur most often in the export business, especially when government agencies or public entities are the beneficiaries of the guarantee. Many countries do not accept foreign banks and guarantors because of legal issues or other form requirements. With an indirect guarantee, one uses a second bank, typically a foreign bank with a head office in the beneficiary’s country of domicile.

CLICK HERE TO CONTACT GENUINE BANK GUARANTEE PROVIDERS AND LEASE BG SBLC PROVIDERS

How Bank Guarantees Work and Who Uses Them

There are several different kinds of bank guarantees, including:

  • Performance guarantees
  • Bid bond guarantees
  • Financial guarantees
  • Advance or deferred payment guarantees

Bank guarantees are often part of arrangements between a small firm and a large organization—public or private. The larger organization wants protection against counterparty risk, so it requires that the smaller party receive a bank guarantee in advance of work. A variety of parties can use bank guarantees for many reasons:

  • Assure a seller that a purchase price will be paid on a specific date.
  • Function as collateral for reimbursing advance payment from a buyer if the seller does not supply the specified goods per the contract.
  • A credit security bond that serves as collateral for repaying a loan.
  • Rental guarantee that serves as collateral for rental agreement payments.
  • A confirmed payment order is an irrevocable obligation, in which a bank pays the beneficiary a set amount on a given date on the client’s behalf.
  • Performance bond that serves as collateral for the buyer’s costs incurred if services or goods are not provided as contractually agreed.
  • Warranty bond that functions as collateral, ensuring ordered goods are delivered, as agreed.

Examples of Bank Guarantees

There are many different kinds of Bank Guarantee namely:

  • A Payment Guarantee assures a seller the purchase price is paid on a set date.
  • An Advance Payment Guarantee acts as collateral for reimbursing advance payment from the buyer if the seller does not supply the specified goods per the contract.
  • A Performance Bond serves as collateral for the buyer’s costs incurred if services or goods are not provided as agreed in the contract.
  • A credit security bond serves as collateral for repaying a loan.

Bank Guarantee vs. Letter of Credit: (BG vs SBLC)

Differences Between Bank Guarantees and Letters of Credit

It is important to note that a bank guarantee is not the same as a letter of credit, although with both instruments the issuing bank accepts a customer’s liability if the customer defaults. With a guarantee, the seller’s claim goes first to the buyer, and if the buyer defaults, then the claim goes to the bank. With letters of credit, the seller’s claim goes first to the bank, not the buyer. Although the seller will likely get paid in both cases, letters of credit offer more assurance to sellers than guarantees generally do.

Differences Between Bank Guarantees and Letters of Credit
Bank Guarantee vs. Letter of Credit: (BG vs SBLC)

Letters of credit are usually used in international trade agreements, while bank guarantees are often used in real estate contracts and infrastructure projects. Its economic effect is to introduce a bank as an underwriter, where it assumes the counterparty risk of the buyer paying the seller for goods.  The International Chamber of Commerce oversaw the preparation of the first Uniform Customs and Practice fombbr Documentary Credits (UCP) in 1933, creating a voluntary framework for commercial banks to apply to transactions worldwide.

Bank guarantees represent a much more significant commitment for banks than letters of credit. A bank guarantee, like a letter of credit, guarantees a sum of money to a beneficiary; however, unlike a letter of credit, the sum is only paid if the opposing party does not fulfill the stipulated obligations under the contract. This can be used to essentially insure a buyer or seller from loss or damage due to nonperformance by the other party in a contract.

So for a bank guarantee, the primary debtor is the buyer or applicant. Only when the applicant defaults on its obligation, will the bank guarantee step into the transaction. Often, a delayed payment is not a trigger for a bank guarantee. Contrastingly, in the financial instrument termed as a letter of credit, the seller’s claim first goes to the bank.

Thus, a letter of credit offers more confidence that there will be prompt repayment, as the bank is involved in the transaction throughout the process. With a bank guarantee, there must be an inability to uphold the contract on the part of the applicant before the bank becomes involved.

Bank Guarantee Cost- How much does a bank guarantee cost?

Kingrise Finance Limited is a provider of bank guarantee at 4% leasing fee per year. We do not require personal guarantees or collateral before issuing a bank guarantee to a customer.

Bank Guarantee Process / Procedure

Below is the normal procedure for Bank Guarantee (BG).

Step 1: Application is made to KINGRISE FINANCE LIMITED for opening of a BG

1. Bank Guarantee (BG) application form. (Provided by KINGRISE FINANCE LIMITED upon request)

2. Desired verbiage of BG. (If none provided, KINGRISE FINANCE LIMITED will provide its normal BG / letter of credit verbiage.

3. SWIFT code and address of beneficiary bank.

4. Know Your Customer (KYC) documents including but not limited to: Passport copy of applicant, proof of address documents such as electricity or water bill, articles of incorporation of applicant company and brief summary, executive summary and/or business plan of underlying transaction.

Step 2: KINGRISE FINANCE LIMITED reviews all documents presented and evaluates acceptability of documents. KINGRISE FINANCE LIMITED then either approves application or denies and shall inform the applicant of such decision.

Step 3: KINGRISE FINANCE LIMITED prepares draft of the BG as it is comfortable to issue and forwards to client for approval. All drafts shall be in line with rules and regulations governing the issuance of BG

Step 4: The client approves the draft and:

1. Signs a contract agreeing to the terms and conditions of issuance and issuance charges as negotiated.

2. KINGRISE FINANCE LIMITED issues the invoice for the agreed upon charges.

Step 5: Client makes payment of charges as per agreed upon payment structure.

1. Client shall provide TT/Wire copy of payment made to KINGRISE FINANCE LIMITED account.

2. KINGRISE FINANCE LIMITED shall confirm to client credit of funds upon receipt of funds to KINGRISE FINANCE LIMITED account.

Step 6: KINGRISE FINANCE LIMITED uploads draft to SWIFT system and provides copy to applicant for final approval of message. Upon approval given by applicant KINGRISE FINANCE LIMITED then releases the SWIFT to beneficiary bank coordinates.

Step 7: Copies of released SWIFT are then forwarded to the client via email or hard copy as requested. In case the client is represented by an advisor, then it is forwarded to the advisor only.

Step 8: Any amendments to BG are subject to approval of KINGRISE FINANCE LIMITED.

Why Do Some Bank Guarantee (BG) Transactions Fail?


These are the top 7 reasons why many Bank Guarantee transactions fail.

1. Free Bank Guarantee Without Upfront Fees – Many people are under the false illusion that they can close a BG or SBLC transaction free of charge without spending any money upfront. They want the Bank Guarantee provider to pay the upfront fees so that they can complete the financial transaction for FREE, taking no risk and investing none of their own money. These type of free deals do not exist in the real world, if they did there won’t be any poor man in the world today. Banks have NEVER sent multimillion dollar assets to customers for FREE and then hope the customer pays them later. This is the number one reason why many BG SBLC transactions fail.

2. Customers Procedure: Every week we receive BG inquiries from people who say they want BG to be issued according to their own terms and conditions. Obviously this is not POSSIBLE; Banks do not work according to a borrowers terms. If you need BG SBLC or any financial instrument for that matter then you have to follow the bank or sblc providers laid down rules and procedures. This is the second reason why many bg sblc deals fail.

3. Price Shoppers – People are lured by fake artificially low BG/sblc prices offered by scammers. The simple truth is, when a scammer is not delivering anything real they can afford to offer you the deal of the century. So when it sounds too good to be true then be careful. Price Shopping is the third reason why bg/sblc transactions fail.

4. Greedy Million Billion Gang: Offers that set forth tranches of $1b, $5b, $20b and more, are just pure nonsense. Every week we receive offers from people who claim they need 70 BILLION Dollar BG SBLC or more. Truth is that most people who troll the internet with multi billion dollar BG/SBLC requests do not have any money in their bank account to close the deal. Greed and Ignorance will make you lose your sense of reasoning. Many people don’t want to hear these things because truth hurts but we will keep saying the truth regardless. 

5. Bank Endorsed Deed of Agreement (DOA): Banks do not endorse BG SBLC deed of agreement contracts or LOI. This action would place a financial liability on the bank and they cannot and will not incur that liability on behalf of their depositors. So if you received any offer or document from anyone claiming it has been endorsed by the bank kindly run for your life because it is FAKE.

6.  BPU (Bank Payment Undertaken): Banks do not issue BPU to enable a customer to get a financial instrument without paying upfront fee. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well contact your banker and ask questions. I am a seasoned banker that has worked with some of the world’s biggest banks such as HSBC, Barclays etc so I know.

7. ICBPO MYTH: ICBPO means Irrevocable Conditional Bank Pay Order. Banks do not issue irrevocable conditional bank purchase orders (ICBPO), or any purchase orders, period. Many joker brokers and uninformed clients think they can close a deal with ICBPO. ICBPO is banned and illegal. In fact, a bank is precluded from incurring any liability on behalf of a depositor. And, the words “irrevocable conditional” form an oxymoron. No western world bank will issue a MT543, as it is a liability on behalf of the bank. In fact, as of September 1, 2003, the MT543 is gone from the banking world. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well contact your banker and ask questions. 

HOW TO GET A BANK GUARANTEE:

Kingrise Finance Limited is a leading provider of bank guarantees, standby letters of credit providers and bank instrument providers.
We are also direct providers of business loans, international project funding, Standby Letter of Credit (SBLC), Letter of Credit (LC/DLC) Bank Guarantee (BG), Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee etc. 
All our bank instruments are issued from prime banks such as HSBC Hong Kong, Barclays Bank London, Standard Chattered Bank or any AAA rated bank of your choice.

lease bg, lease bg providers, lease bank guarantee, lease bank guarantee provider, top Bank Guarantee Providers, lease bank guarantee providers, leading provider of bank guarantee, top bank guarantee provider, genuine bank guarantee provider, international bank guarantee providers, provider of leased bank guarantee

Our bank instruments are cash backed and can be used for Discounting, Monetization and Private Placement Programs (PPP). They also can be used as collateral against a loan or credit line to secure Funding for Projects.

Bank Guarantee Description:
1. Bank Instrument Type: Cash Backed Bank Guarantee {BG}
2. Face Value: USD 1 Million (Minimum) to USD 5 Billion (Maximum)
3. Issuing Bank: Barclays Bank London, HSBC Hong Kong, Citibank New York, Deutsch Bank Germany or any prime bank.
4. Age: One Year and One Day (with rolls and extensions where applicable)
5. Leasing Price: 4% of Face Value plus 2% brokers commission (Applicable only if there are brokers in the transaction)
6. Delivery: SWIFT MT-760
7. Payment: MT103 Swift Wire Transfer
8. Hard Copy: Bank Bonded Courier within 7 banking days.

What is Bank Guarantee?
#leasebg, #leasebankguarantee, leasebgproviders, #leasebankguaranteeprovider, #providerofleasedbankguarantee,
#topbankguaranteeprovider,
#genuinebankguaranteeprovider, #
realbankguaranteeprovider, #internationalbankguaranteeproviders

Why Choose Us?

  • Fast Turnaround
  • Best Top Rated Banks
  • Competitive Low rates
  • No prepayment penalty
  • 2 Days for Commitment
  • Extremely Satisfied Clients
  • WE KEEP OUR PROMISE
  • 20 Years of Experience & Trust
  • No Personal Collateral Required
  • Solutions for every customer & every industry.
  • Loan amounts from $1 million to no maximum.
  • Fast Approvals & Fast Funding- Closing in as little as 5 days
What is Bank Guarantee?

BROKERS WANTED: We welcome brokers who are direct to the client. New brokers are welcomed and are rewarded with 2% commission on every deal they bring to us, but you must be direct to the client and not in broker chains. We do not get involved with daisy chain of brokers, neither do we tolerate scammers, jokers and time wasters.

We would welcome the chance to earn your trust and deliver you the best service in the industry. If you are interested to work with us kindly contact us immediately

Email: info@kingrisefinance.com
Blog: https://kingrisefinance.blog
Website: https://www.kingrisefinance.com

Categories
Bank Guarantees

Genuine Bank Guarantee Providers

Genuine Bank Guarantee Providers- Lease BG SBLC Providers

Kingrise Finance Limited are Genuine Bank Guarantee Providers and Lease BG SBLC Providers

What Is A Bank Guarantee / BG SBLC?

A bank guarantee is an assurance that a bank provides to a contract between two external parties, a buyer and a seller, or in relation to the guarantee, an applicant and a beneficiary. The bank guarantee serves as a risk management tool for the beneficiary, as the bank assumes liability for completion of the contract should the buyer default on their debt or obligation.

A bank guarantee allows the customer, or debtor, to acquire goods, purchase equipment or draw down a loan. A bank guarantee is a promise from a bank or other lending institution that if a particular borrower defaults on a loan, the bank will cover the loss. Note that a bank guarantee is not the same as a letter of credit.

CLICK HERE TO GET A BANK GUARANTEE FROM ONE OF THE TOP TEN BANKS IN THE WORLD.

A bank guarantee acts similarly to a line of credit, except that a line of credit can be drawn upon at will by the bank’s client. A bank guarantee is used only if the client does not pay its vendor an agreed-upon amount. U.S. credit institutions are forbidden from assuming guarantee obligations, and therefore most international transactions require a standby letter of credit.

Bank guarantees serve a key purpose for small businesses; the bank, through their due diligence of the applicant, provides credibility to them as a viable business partner for the beneficiary of the guarantee. In essence, the bank puts its seal of approval to the applicant’s creditworthiness, co-signing on behalf of the applicant as it relates to the specific contract the two external parties are undertaking.

Genuine Bank Guarantee Providers and Lease BG SBLC Providers
Genuine Bank Guarantee Providers and Lease BG SBLC Providers

A bank guarantee is a contract between 3 different parties and they include:

  • The applicant (the party that requests a bank guarantee from the bank and borrows from a creditor)
  • The beneficiary (the party that receives a partial guarantee)
  • The bank (the party that agrees to sign and assures payment in case the applicant fails to repay the loan)

Bank guarantees are very commonly utilised among business entities. With the help of a bank guarantee, the debtor or borrower or customer will be able to purchase equipment, machinery, raw materials, acquire additional funds, etc. for commercial purposes. Bank guarantees help businesses as creditors will get a proper reassurance that the loan amount will be repaid by the bank if the business is unable to repay the loan entirely on time.

When a bank signs a bank guarantee, it promises to pay any amount according to the request made by the borrower. Hence, signing a bank guarantee implies a high risk for banks.

Please Click Here if you want to get a free bank guarantee without upfront fees.

The Different Types and Kinds of Bank Guarantees

  • Deferred payment guarantee: This refers to a bank guarantee or a payment guarantee that is offered to the exporter for a deferred period or for a certain time period. When a buyer purchases capital goods or machinery, the seller will give credit to the buyer when the buyer’s bank gives a guarantee that it will pay the unsettled dues of the buyer to the seller. Under this type of guarantee, payment will be made in installments by the bank for failure in supplying raw materials, machinery or equipment.
  • Financial guarantee: A financial bank guarantee assures that money will be repaid if the party does not complete a particular project or operation entirely. According to the financial guarantee agreement, when there is a delay in the completion of the project, the bank will make the payment.
  • Advance payment guarantee: Under this kind of guarantee, an advance payment will be made to the seller. There will also be a guarantee that if the seller fails to deliver the service or product accurately or promptly, the buyer will receive a refund of the payment.
  • Foreign bank guarantee: A foreign bank guarantee is provided by a bank on behalf of a borrower. This will be offered on behalf of the foreign beneficiary or creditor.
  • Performance guarantee: Under a performance guarantee, compensation of money will be made by the bank when there is any delay in delivering the performance or operation. Payment will have to be made even if the service is delivered inadequately.
  • Bid bond guarantee: Under this type of guarantee, there will be a supply bidding procedure. This will be conducted by the contractor for the owner of an infrastructure or industrial project or any kind of operation. The contractor of the project will guarantee that the best bidder or the highest bidder will have the capability and authority to implement a project as per his or her preferences. The bid bond will be given to the owner of the project as a proof of guarantee and the bond will imply that the project will have to be devised according to the bid contract.

Real-World Example

For a real-world example, consider a large agricultural equipment manufacturer. While the manufacturer may have vendors in many places, it is often best practice to have local vendors for key parts, both for accessibility and transportation cost reasons.

As such, they may wish to enter into a contract with a small metalworks shop that is located in the same industrial area. Due to the small vendor being relatively unknown, the large company will require the vendor to secure a bank guarantee before entering into a contract for $300,000 worth of machine parts. In such a case, the large company will be the beneficiary, and the small vendor will be the applicant.

Should the small vendor receive the bank guarantee, the large company will enter into a contract with the vendor. At this point, the company may pay the $300,000 in advance, with the understanding that the vendor is to deliver the agreed-upon parts in the following year. If the vendor is unable to do so, the agricultural equipment maker can claim the losses resulting from the vendor breaking the terms of the contract from the bank.

Through the bank guarantee, the large agricultural equipment manufacturer can shorten and simplify its supply chain without compromising its financial situation.

Genuine Bank Guarantee Providers
Genuine Bank Guarantee Providers

Comparison between Bank Guarantee and Letter of Credit

Many times, people get confused between bank guarantee and a letter of credit. However, one should understand that both are pretty different.

A bank guarantee refers to a commercial or financial instrument that is provided by a bank, where the bank assures or guarantees a beneficiary that it will make the payment to the bank in case the actual customer fails to meet his or her obligations. The bank will pay on behalf of the customer who requests for a bank guarantee.

On the other hand, a letter of credit refers to a promise or commitment in writing made by a bank or any other financial institution or corporation to a particular seller that payment will be made to the seller if the seller completes performing whatever is mentioned in the letter of credit. For the bank to make the payment on behalf of the original buyer, there should be a documentary proof that the seller has completed the transaction accurately by delivering the right product or service on time. The seller will get a guarantee from the bank that the seller will definitely pay the amount on behalf of the original buyer once the obligations are fulfilled.

Under a bank guarantee, if the buyer is unable to make the payment to the seller or creditor, then the bank pays the fixed amount to the seller as the obligations of the contract are not met. On the other hand, under a letter of credit, the bank makes the payment to the seller once he or she delivers. This is because the seller has completed fulfilling the required obligations.

Bank guarantees are competitively priced in nature generally. They are usually valid for a long period. The tenure of a bank guarantee is usually high. Moreover, bank guarantees are commonly accepted in almost all countries. Bank guarantees are available in Indian Rupee as well as currencies of other nations. Hence, they are very helpful for global transactions with parties in different foreign countries.

Advantages of Bank Guarantees

To the applicant:

  • Small companies can secure loans or conduct business that would otherwise not be possible due to the potential riskiness of the contract for their counterparty. It encourages business growth and entrepreneurial activity.
  • The banks charge low fees for bank guarantees, normally a fraction of 1% of the overall transaction, for the assurance provided.

To the beneficiary:

  • The beneficiary can enter the contract knowing due diligence’s been done on their counterparty.
  • The bank guarantee adds creditworthiness to both the applicant and the contract.
  • There is a risk reduction due to the bank’s assurance that they will cover the liabilities should the applicant default.
  • There is an increase in confidence in the transaction as a whole.

Disadvantages of Bank Guarantees

  • The involvement of a bank in the transaction can bog down the process and add an unnecessary layer of complexity and bureaucracy.
  • When it comes to particularly risky or high-value transactions, the bank itself may require assurance on the part of the applicant in the form of collateral.

So if you are seriously looking for a Bank Guarantee (BG) then make sure you use a reputable Financial Services Provider with decades of experience such as Kingrise Finance Limited.

For more information please Email us: info@kingrisefinance.com

Categories
SBLC

Standby Letter of Credit Provider

Kingrise Finance Limited is a Standby Letter of Credit Provider, Real SBLC Provider, SBLC Funding, SBLC Financing, bg sblc providers, Cost of sblc, Types of SBLC, SBLC Monetization, difference between lc and sblc, sblc mt760, Standby Letter of Credit (SBLC) Meaning!

A standby letter of credit (SBLC/SLOC) is a guarantee of payment by a bank on behalf of their client. It is a loan of last resort in which the bank fulfills payment obligations by the end of the contract if their client cannot. A standby letter of credit can also be abbreviated SBLC or SLOC. A standby letter of credit is different from a bank guarantee. Kingrise Finance Limited is sblc provider. We are bank guarantee provider. Please be aware that Standby Letter of Credit is different from a Bank Guarantee.

Please click here to read the difference between Bank Guarantee (BG) and Standby Letter of Credit (SBLC/SLOC).

Standby Letter of Credit Provider | Kingrise Finance Limited
Standby Letter of Credit Provider

Types of Standby Letter of Credit (SBLC/SLOC)

Financial standby LOC: An exporter sells goods to a foreign buyer, who promises to pay within 60 days. If the payment never arrives (and the exporter required the buyer to use a standby letter of credit) the exporter can collect payment from the importer’s bank. Before issuing the letter of credit, the bank typically evaluates the importer’s credit and determines that the importer will repay the bank. But if the customer’s credit is in question, banks may require collateral (or funds on deposit) for approval.

Performance standby LOC: A contractor agrees to complete a construction project within a certain timeframe. When the deadline arrives, the project is not complete. With a standby letter of credit in place, the contractor’s customer can demand payment from the contractor’s bank. That payment functions as a penalty to encourage on-time completion, funding to bring in another contractor to take over mid-project, or compensation for the headaches of dealing with problems. This is an example of a “performance” standby letter of credit, and a failure to perform triggers the payment.

Advantages of a Standby Letter of Credit (SBLC / SLOC)

An SBLC helps ensure that the buyer will receive the goods or service that’s outlined in the document. For example, if a contract calls for the construction of a building and the builder fails to deliver, the client presents the SLOC to the bank to be made whole. Another advantage when involved in global trade, a buyer has an increased certainty that the goods will be delivered from the seller.

Also, small businesses can have difficulty competing against bigger and better-known rivals. An SBLC can add credibility to its bid for a project and can often times help avoid an upfront payment to the seller.

The SBLC / SLOC is often seen in contracts involving international trade, which tend to involve a large commitment of money and have added risks.

For the business that is presented with a SLOC/SBLC, the greatest advantage is the potential ease of getting out of that worst-case scenario. If an agreement calls for payment within 30 days of delivery and the payment is not made, the seller can present the SLOC to the buyer’s bank for payment. Thus, the seller is guaranteed to be paid. Another advantage for the seller is that the SBLC reduces the risk of the production order being changed or canceled by the buyer.

Uses of SBLC / SLOC

A standby letter of credit helps facilitate international trade between companies that don’t know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller certain to receive payment, a SLOC doesn’t guarantee the buyer will be happy with the goods.   A standby letter of credit is most often sought by a business to help it obtain a contract. The contract is a “standby” agreement because the bank will have to pay only in a worst-case scenario. Although an sblc/sloc guarantees payment to a seller, the agreement must be followed exactly. For example, a delay in shipping or a misspelling a company’s name can lead to the bank refusing to make the payment.There are two main types of standby letters of credit:A financial sblc/sloc guarantees payment for goods or services as specified by an agreement. An oil refining company, for example, might arrange for such a letter to reassure a seller of crude oil that it can pay for a huge delivery of crude oil.Standby letters of credit can help establish trust with your business partners and be a powerful tool to help meet your business goals.

What Is The Difference Between Letter of Credit (LC) and Standby Letter of Credit (SBLC)? Difference between LC and SBLCis as follows…

difference between Standby Letter of Credit & LC | SBLC Vs. LC


A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the counterparty risk of the buyer paying the seller for goods. The Standby Letter Of Credit (SBLC) is governed by a set of guidelines known as the Uniform Customs and Practice (UCP 600), which was first created in the 1930s by the International Chamber of Commerce (ICC).

So What Is The Key difference: The ‘Letter of Credit’ and the ‘Standby Letter of Credit’ are two legal bank documents that are used by international traders. Both these letters are used to ensure the financial safety between the supplier and their buyers. And, SBLC is a type of LC that is used when there is a contingent upon the performance of the buyer and this letter is available with the seller to prove the buyer’s non-performance during the sale.

top letters of credit providers, real SBLC Providers, genuine SBLC providers, lease sblc providers, lease bg sblc providers, bank instrument providers, Financial SBLC, Financial SBLC provider, Financial SBLC’s, SBLC discounting, SBLC Monetizers, HSBC LC and SLBC are the two financial instruments that are meant to safeguard the financial interests of the international traders i.e. buyers and sellers. It simply means that both these terms are widely useful while making transaction between the two trading parties. These help in giving financial security to both the parties. Also, these contracts are produced in good faith and in both the cases the fund gets mobilized.

During a transaction, the buyer wants an assurance of receiving his product or merchandise on time, and the seller wants his security of being paid on time at the completion of the job. Here, a letter of credit is issued, for it is an assurance or a type of guarantee that the seller will receive his correct payments in time by the clients. The LC solves both the issues by bringing in the buyer’s and seller’s banks into the transaction.

The issuing bank of the buyer, then, opens a LC in the favor of the seller and states that seller will be paid and that he or she will not suffer any damages or losses because of the non-payment of the buyer. Though, the money transfer to the seller will only be initiated after all the conditions or documents of the contract are completed. However, the bank also safeguards the interest of the buyer by not paying the supplier until it receives a confirmation from the supplier that the goods have been shipped.

Based on this, there are two types of LCs being issued, they are:

Documentary Letter of Credit (DLC) and
Stand By Letter of Credit (SBLC)
Now, the DLC depends on the performance by the supplier, whereas SBLC depends on the on the non-performance or default on the part of the buyer.

lease sblc, top letters of credit providers, international bank guarantee providers, top bg providers, lease bank guarantee providers, top sblc providers, guaranteed lease program, lease bg sblc providers, genuine bank guarantee providers, top letters of credit providers, top bg providers, genuine bank guarantee providers, loans against bank guarantees, bank instrument providers. A SBLC works on the same principle as a documentary letter of credit but with different objectives and required documents. The essence of SBLC is that the issuing bank will perform in the case of non performance or default by the buyer.

The purpose of this letter is to establish a bank guarantee for the deal or transaction with a third party. For example, if an individual wishes to take a loan, but does not have a sufficient credit standing, the bank may then ask for a guarantee from another party (third party), and this is done in the form of a standby letter of credit that is issued by another bank. However, the said individual would then have to produce certain documents or evidence to support the non-performance of the buyer to obtain the payment through the SBLC.

The bank is obligated to make payment if the documents presented comply with the terms of contract. Though, the SBLC are considered very versatile and can be used with modifications to suit the interests and requirements of the buyers and sellers.

CLICK HERE TO GET A STANDBY LETTER OF CREDIT (SBLC) FROM HSBC HONG KONG, BARCLAYS BANK LONDON, CHASE BANK OF AMERICA, STANDARD CHARTERED BANK, BANK OF AMERICA OR ANY PRIME BANK IN EUROPE OR USA.

Cost of SBLC

Standby letter of credit costs between 1-10% of the SBLC/SLOC amount before issuing the sblc/sloc. This fee is usually charged per year that the letter of credit is in effect. If the sblc/sloc is needed for more than one year, there will be an option of rolls and extensions where applicable. If the terms of the contract are fulfilled early, you can cancel the SLOC/SLBC without incurring additional charges.

What is SBLC funding & SBLC Financing? 

SBLC financing or SBLC funding is the process of using sblc to obtain loan or financing from a bank.

What is Standby Letter of Credit (SBLC) Monetization? How Do You Monetize SBLC??

SBLC Monetization or monetisation is the process of converting a standby letter of credit (sblc) into money or legal tender.

SBLC Monetization - monetizers of bank instruments - Kingrise Finance Limited
SBLC Monetization – monetizers of bank instruments – Kingrise Finance Limited

Kingrise Finance Limited are sblc monetizers. We can arrange and assist clients to discount or monetize sblc, or arrange a Non Recourse loan against a Standby Letter of Credit (SBLC) issued from prime banks. The Standby Letter of Credit Monetization arrangement issues Non Recourse funds to the Client shortly after the Standby Letter of Credit (SBLC) is delivered to the Monetizer.

Our SBLC monetization rate is 80% LTV which is the best rate in the industry, and above all, all our sblc are issued by top AAA rated banks such as HSBC Hong Kong, Barclays Bank London, Citi Bank New York, Credit Suisse etc. 

Complete End to End Managed Standby Letter of Credit (SBLC) Program – We provide a comprehensive, integrated & prestructured Standby Letter of Credit (SBLC) Issuing and Monetization Program.

At Kingrise Finance Limited, we offer a very simple and straightforward SBLC Monetization settlement method using the Swift Network System..We use the SWIFT Network to have the Standby Letter of Credit (SBLC) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.

URGENT NOTICE: It might interest you to know that there are only 10 genuine bg sblc providers in the world and Kingrise Finance Limited is one of the leading providers of sblc and genuine provider of bank guarantee. Contact us if you want to know the list of the 10 genuine sblc providers in the world and we will be glad to share that information with you.

What is the LTV (Loan To Value) of a Standby Letter of Credit (SBLC)? At Kingrise Finance Limited, we offer the best rates in the industry. All our standby letters of credit (SBLC) are issued from prime banks and our SBLC LTV is 80% which you cannot get elsewhere. So why go elsewhere?

DESCRIPTION OF BUY/PURCHASE BANK INSTRUMENT (BG/SBLC/SLOC)

1. Instrument:                BG (Bank Guarantee) Standby Letter of Credit (SBLC), cash-backed, 
2. Total Face Value:          Eur/USD 2 Million (Min) to Eur/USD 500m (Max)
3. Issuing Bank:              HSBC Hong Kong, Barclays Bank London, Deutsch Bank AG, Frankfurt  or any AA Rated Bank.
4. Term / Age:                One (1) Year and One (1) day, Fresh Cut
5. Invoice Price:              45% Net and 47% Gross of the face value of each BG/SBLC to the Seller, including 2% consultancy fees as per IMFPA.

6. Consultation Fee:       In total of 2%, which is to be split and paid to the consultants as follows:

                                       1% to …(Seller’s Mandate).., paid by the Seller/Payer-1

                                       1% to ………………………, paid by the Buyer/Payer-2 7. Delivery of instrument:          Bank-To-Bank by SWIFT MT-760, as per the Schedule of Delivery of Buy-Sell Agreement

8. Payment for instruments:                   By SWIFT MT-103 wire transfer
9. Original Hard Copy:                 By bonded courier to Buyer’s designated Depository Bank within Seven (7) bank working days after receipt of BG/SBLC(s) settlement payment by SWIFT MT-103 into the Seller’s account.

BELOW IS THE DESCRIPTION OF LEASE BANK INSTRUMENTS (BG/SBLC/SLOC)

1. Instrument:               Fully Cash Backed Bank Guarantee {BG} or StandBy Letter of Credit {SBLC}
2. Total Face Value:       USD 2Million (Min) to USD 500m (Max)
3. Issuing Bank:             HSBC Hong Kong, Barclays Bank London or any prime Bank.
4. Age:                        One Year and  One Day (with rolls and extensions where applicable) 
5. Leasing Price:            4%  (+ 2% brokers commission where applicable) 2% broker commission applies to clients that were introduced by brokers
6. Delivery:                   SWIFT MT-760
7. Payment:                  MT103  Wire Transfer
8. Hard Copy:                Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument

Terms and Procedure for SBLC

Below is the normal procedure for Standby Letter of Credit (SBLC).

Step 1: Application is made to KINGRISE FINANCE LIMITED for opening of a SBLC including but not limited to the following:

1. SBLC application form. (Provided by KINGRISE FINANCE LIMITED upon request)

2. Desired verbiage of SBLC. (If none provided, KINGRISE FINANCE LIMITED will provide its normal SBLC / letter of credit verbiage.

3. SWIFT code and address of beneficiary bank.

4. Know Your Customer (KYC) documents including but not limited to: Passport copy of applicant, proof of address documents such as electricity or water bill, articles of incorporation of applicant company and brief summary, executive summary and/or business plan of underlying transaction.

Step 2: KINGRISE FINANCE LIMITED reviews all documents presented and evaluates acceptability of documents. KINGRISE FINANCE LIMITED then either approves application or denies and shall inform the applicant of such decision.

Step 3: KINGRISE FINANCE LIMITED prepares draft of the SBLC as it is comfortable to issue and forwards to client for approval. All drafts shall be in line with rules and regulations governing the issuance of SBLC.

Step 4: The client approves the draft and:

1. Signs a contract agreeing to the terms and conditions of issuance and issuance charges as negotiated.

2. KINGRISE FINANCE LIMITED issues the invoice for the agreed upon charges.

Step 5: Client makes payment of charges as per agreed upon payment structure.

1. Client shall provide TT/Wire copy of payment made to KINGRISE FINANCE LIMITED account.

2. KINGRISE FINANCE LIMITED shall confirm to client credit of funds upon receipt of funds to KINGRISE FINANCE LIMITED account.

Step 6: KINGRISE FINANCE LIMITED uploads draft to SWIFT system and provides copy to applicant for final approval of message. Upon approval given by applicant KINGRISE FINANCE LIMITED then releases the SWIFT to beneficiary bank coordinates.

Step 7: Copies of released SWIFT are then forwarded to the client via email or hard copy as requested. In case the client is represented by an advisor, then it is forwarded to the advisor only.

Step 8: Any amendments to SBLC are subject to approval of KINGRISE FINANCE LIMITED.

Why Do Some SBLC Transactions Fail? Most SBLC transactions fail because of GREED and unworkable procedures.
These are the top 7 reasons why many BG SBLC transactions fail.

1. Free SBLC Without Upfront Fees – Many people are under the false illusion that they can close a BG SBLC transaction free of charge without spending any money upfront. They want the sblc provider to pay any upfront fees so that they can complete the sblc transaction for free of charge without spending anything. However, there is no such thing in the world as a free bg sblc, and every customer must have the capacity to pay any fees or costs associated with the bg sblc transaction, if you don’t pay this fee nobody will pay it for you. This is the number one reason why many SBLC transactions fail. If free bg sblc is possible I believe that everyone in the world will be a billionaire.

2. Customers Procedure: Every week we receive sblc inquiries from people who say they want SBLC to be issued according to their own terms and conditions. Obviously this is not POSSIBLE; Banks and sblc providers do not work according to a customers terms. If you need SBLC or any financial instrument for that matter then you have to follow the bank or sblc providers laid down rules and procedures. This is the second reason why many sblc deals fail.

3. Cheap Price:  Greedy people are easily lured by fake artificially low sblc prices offered by scammers. The simple truth is, when a scammer is not delivering anything real they can afford to offer you the deal of the century. So when it sounds too good to be true then be careful. Price Shopping is the third reason why sblc transactions fail.

4. Greedy Million Billion Gang: Offers that set forth tranches of $1b, $5b, $20b and more, are just pure nonsense. Every week we receive offers from people who claim they need 70 BILLION Dollar SBLC or more. Truth is that most people who troll the internet with multi billion dollar SBLC requests do not have any money in their bank account to close the deal. Greed and Ignorance will make you lose your sense of reasoning. Many people don’t want to hear these things because truth hurts but we will keep saying the truth regardless. 

5. Bank Endorsed Deed of Agreement (DOA): Banks do not endorse SBLC deed of agreement contracts or LOI. This action would place a financial liability on the bank and they cannot and will not incur that liability on behalf of their depositors. So if you received any offer or document from anyone claiming it has been endorsed by the bank kindly run for your life because it is FAKE.

6.  BPU (Bank Payment Undertaken): Banks do not issue BPU to enable a customer to get a financial instrument without paying upfront fee. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well contact your banker and ask questions. I am a seasoned banker that has worked with some of the world’s biggest banks so I know.

7. ICBPO MYTH: ICBPO means Irrevocable Conditional Bank Pay Order. Banks do not issue irrevocable conditional bank purchase orders (ICBPO), or any purchase orders, period. Many joker brokers and uninformed clients think they can close a deal with ICBPO. In fact, a bank is precluded from incurring any liability on behalf of a depositor. And, the words “irrevocable conditional” form an oxymoron. No western world bank will issue a MT543, as it is a liability on behalf of the bank. In fact, as of September 1, 2003, the MT543 is gone from the banking world. This is just joker-broker and uninformed customer nonsense. You don’t believe me? Well contact your banker and ask questions. 


SBLC Process- How To Get A Standby Letter of Credit (SBLC)

Everyday lots of people are looking To Find Genuine SBLC Providers and real bank guarantee providers. Why are there so many scammers in the bank instrument industry? Why do most people who claim to be SBLC providers scammers turn out to be scammers? Since there are many sharks in this industry pretending to be providers, how can I find a real bg sblc provider that will not steal my money and run away?

Kingrise Finance Limited was incorporated in Hong Kong on 22-SEP-1999 as a Government Licensed Money Lender with CR No.: 0689078. We are leading providers of Business Loan, SME Loans, Project Financing, Recourse Loan, Non Recourse Loans and Bank Financial Instruments such as Standby Letter of Credit, Bank Guarantee, Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee, Bank Comfort Letter, Letters of credit etc.

We have been providing these financial services to our numerous customers all over the world including importers, exporters as well as customers that need credit enhancements or trade finance facilities to execute projects locally or internationally.

Our loan interest rate is just 3% annually and you can get loan financing from us with or without security or collateral. The loan term is up to 30 years with a grace period up to 3 years for those in the construction industry.

Our bank instruments, bg and sblc/sloc are issued from prime banks such as Barclays Bank London, Standard Chartered Bank, HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP) as well as import and export transactions.

Why Choose Us?

  • Fast Turnaround
  • Best Top Rated Banks
  • Competitive Low rates
  • No prepayment penalty
  • 2 Days for Commitment
  • Extremely Satisfied Clients
  • WE KEEP OUR PROMISE
  • 20 Years of Experience & Trust
  • No Personal Collateral Required
  • Solutions for every customer & every industry.
  • Loan amounts from $1 million to over $500 million
  • Fast Approvals & Fast Funding- Closing in as little as 5 days

BROKERS: We welcome new brokers who are direct to their clients. New brokers are welcomed and are rewarded with 2% commission on every deal they bring to us. 

Kindly contact Us today for all your funding needs, including business loan, sme Loans, project financing, bank instruments (Bank Guarantee, Standby Letter of Credit, Letter of Credit) | BG|CD|BD|DLC|BCL|SBLC|SLOC.

When you send us an email inquiry please remember to include what particular bank instrument that you need and what you need it for, our customer services representatives are waiting to hear from you. We will review your request and contact you ASAP!

Email: info@kingrisefinance.com
Blog: https://kingrisefinance.blog
Website: https://www.kingrisefinance.com

Categories
Bank Guarantees

Lease Bank Guarantee Providers

Kingrise Finance Limited are Lease Bank Guarantee Providers, Genuine Bank Guarantee Provider, BG SBLC Providers, Bank Instrument Providers, financial instrument providers, monetizers of bank instruments, international bank guarantee providers, genuine bank instrument providers & sblc providers. 

TABLE OF CONTENTS

1. What is the Meaning of Bank Guarantee?
2. What are the Types of Bank Guarantee?
3. What are the Uses of Bank Guarantee?
4. What are the Advantages and Disadvantages of Bank Guarantees?
5. What are the Costs and Charges of Bank Guarantee?
6. What are the major Differences between BG & Letter of Credit (LOC)?
7. What is the process to obtain or acquire a bank Guarantee (BG)?

1. What is the Meaning of Bank Guarantee?

A bank guarantee is a promise from a bank or a financial institution that if a particular borrower defaults on a loan, the bank will cover the loss.

The bank guarantee signifies a lending institution ensures that the liabilities of a debtor is going to be met. In other words, if the debtor is unsuccessful to settle a debt, the bank will cover it. A bank guarantee allows the customer, or debtor, to acquire goods, purchase equipment or draw down a loan.  

A bank guarantee acts similarly to a line of credit, except that a line of credit can be drawn upon at will by the bank’s client. A bank guarantee is used only if the client does not pay its vendor an agreed-upon amount. U.S. credit institutions are forbidden from assuming guarantee obligations, and therefore most international transactions require a standby letter of credit. 

Lease Bank Guarantee Providers - Kingrise Finance Limited
Lease Bank Guarantee Providers

2. Types and Examples of Bank Guarantees

There are many different kinds of Bank Guarantee namely:

  • A Payment Guarantee assures a seller the purchase price is paid on a set date.
  • An Advance Payment Guarantee acts as collateral for reimbursing advance payment from the buyer if the seller does not supply the specified goods per the contract.
  • A Performance Bond serves as collateral for the buyer’s costs incurred if services or goods are not provided as agreed in the contract.
  • A credit security bond serves as collateral for repaying a loan.

For example, St. Marys hospital is a new hospital that wants to buy $1 million in medical equipment. The equipment vendor requires St. Marys hospital to provide a bank guarantee to cover payments before they ship the equipment to St. Marys hospital. St. Marys hospital requests a guarantee from the lending institution such as Kingrise Finance Limited ( kingrisefinance.com ) keeping its cash accounts.  Kingrise Finance Limited essentially cosigns the purchase contract with the vendor. bank guarantee provider- Kingrise Finance Limited

KEY TAKEAWAYS

  • A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan, of which there are many examples.
  • Individuals often choose direct guarantees for international and cross-border transactions.
  • A bank guarantee enables the customer, or debtor, to acquire goods, buy equipment or draw down a loan.

3. What are the Uses of Bank Guarantee?

  • When large companies purchases from small vendors, they generally require the vendors to provide guarantee certificate from banks before providing such business opportunities.
  • Predominantly used in the purchase and sale of goods on credit basis, where the seller is assured of payment from the bank in case of default by the buyer.
  • Helps in certifying the credibility of individuals, which in turn, enables them in obtaining loans and also assists in business activities.

Though there are lots of uses from a bank guarantee for the applicant, the bank should process the same only after ensuring the financial stability of the applicant/business. The risk involved in providing such a guarantee must be analysed thoroughly by the bank

CLICK HERE TO GET A BANK GUARANTEE FROM ONE OF THE AAA RATED BANKS IN THE WORLD

4. What are the Advantages and Disadvantages of Bank Guarantees?

Bank guarantee has its own advantages and disadvantages. The advantages are:

  • Bank guarantee reduces the financial risk involved in the business transaction.
    • Due to low risk, it encourages the seller/beneficiaries to expand their business on a credit basis.
    • Banks generally charge low fees for guarantees, which is beneficial to even small-scale business.
    • When banks analyse and certify the financial stability of the business, its credibility increases and this, in turn, increase business opportunities.
    • Mostly, the guarantee requires fewer documents and is processed quickly by the banks (if all the documents are submitted).

On the flip side, there are some disadvantages such as:

  • Sometimes, the banks are so rigid in assessing the financial position of the business. This makes the process complicated and time-consuming.
    • With the strict assessment of banks, it is very difficult to obtain a bank guarantee by loss-making entities.
    • For certain guarantees involving high-value or high-risk transactions, banks will require collateral security to process the guarantee.

5. What are the Costs and Charges of Bank Guarantee?

Generally, BG charges are based on the risk assumed by the bank in each transaction. For example, a financial BG is considered to assume more risk than a performance BG. Hence, the fee for financial BG will be higher than the fee charged for performance BG.
Based on the type of the BG, fees are generally charged on a quarterly basis on the BG value of 0.75% or 0.50% during the BG validity period. Apart from this, the bank may also charge the application processing fee, documentation fee, and handling fee.
In some cases, security is required by the bank from its applicant, which is generally 100% of the BG value. In certain cases, collateral security or cash margin may also be accepted by the issuing bank.

6. Difference between Bank Guarantee (BG) & Letter of Credit (LOC)

Bank Guarantee is not the same as a letter of credit, although with both instruments the issuing bank accepts a customer’s liability if the customer defaults. With a guarantee, the seller’s claim goes first to the buyer, and if the buyer defaults, then the claim goes to the bank. With letters of credit, the seller’s claim goes first to the bank, not the buyer. Although the seller will likely get paid in both cases, letters of credit offer more assurance to sellers than guarantees generally do.

LOC is a financial document which imposes an obligation on the bank to make payment to the beneficiary on completion of certain services as required by the applicant. LOC is issued by the bank when the buyer requests his bank to make payment to the seller on the receipt of certain goods or services.
That is, when the buyer runs into cash flow difficulties or similar situations and thus cannot make immediate payment to the seller, he will approach his bank to make the payment to the seller on submission of certain documents. The bank will later recover the amount paid from the buyer along with the required charges.


On the other hand, under BG, the bank is required to make payment to the third-party only if the applicant fails to make the payment to the third-party or does not fulfil the required obligations under the contract. A BG is essentially used to ensure a seller from loss or damage due to the non-performance by the other party in a contract.

However, there are a lot of differences between LOC and BG.

Major differences between Letter of Credit (LOC) and Bank Guarantee (BG)

ParticularsLOCBG
NatureLOC is an obligation accepted by a bank to make payment to a beneficiary if certain services are performed.BG is an assurance given by the bank to the beneficiary to make the specified payment in case of default by the applicant.
Primary liabilityBank retains the primary liability to make the payment and later collects the same from the customer.The bank assumes to make the payment only when the customer defaults to make payment.
PaymentBank makes the payment to the beneficiary as and when it is due. It need not wait for a default to be made by the customer.Only when the customer defaults the payment to the beneficiary, the bank makes the payment.
Way of working  LOC ensures that the amount will be paid as long as the services are performed as per the agreed terms.BG assures to compensate for the loss if the applicant does not satisfy the specified conditions.
Number of parties involvedThere are multiple parties involved here – LOC Issuing bank, its customer, the beneficiary (third party), and advising bank.There are only three parties involved –  banker, its customer, and the beneficiary (third party).
SuitabilityGenerally, this is more appropriate during the import and export of goods and services.Suits any business or personal transactions.
RiskBank assumes more risk than the customer.Customer assumes the primary risk.

 7.  What is Bank Guarantee (BG) Monetization And How Do You Monetize a bg?

monetizers of bank instruments- monetize bg sblc via Kingrise Finance Limited
monetizers of bank instruments- monetize bg sblc via Kingrise Finance Limited

Bank Guarantee (BG) Monetization or monetisation is the process of converting bank instruments such as Bank Guarantee (BG) or sblc into money or legal tender.

Monetizing bank guarantee signifies raising finance or a credit line against it. If you have bank guarantee or a letter of credit, you might be able to monetize it. For bank guarantee monetization and to raise finance against it, it is paramount that the bank guarantee has been specifically formulated for the purpose of raising finance. Bank guarantees framed for other purposes cannot be generally monetized or financed.

Monetizing Bank Guarantee liquidates the bank guarantee and uses them as reinforcement for cash. Almost any bank guarantee all over the world can be used to fund a project. Bank guarantee can be leased or it can be owned.

Kingrise Finance Limited are monetizers of bank instruments such as Bank Guarantees (BG) and Standby Letters of Credit (SBLC). We are bg sblc monetizers.SBLC (Standby Letter of Credit) and BG (Bank Guarantee) are both financial instruments issued by banks and financial institutions. These financial instruments are used to obtain loan and financing from banks, they are also used for trade finance, foreign exchange as well as import and export transactions.

Bank Guarantees (BGs) can be Monetized for:

  • Cash
  • Placed into Trade Programs (PPP Private Placement Programs)
  • or a Hybrid of Immediate Cash and funds in a Trade Program.

Standard Monetization Terms For BG / SBLC.

  • BG and SBLC to be monetized must be issued by top 20 AAA rated banks such as HSBC, Citi, barclays, Stanchart etc.
  • BG and SBLC from unrated banks cannot be monetized.
  • Instruments with a Value OVER 5 Million Dollars
  • BG & SBLC MUST have at least 11 months validity prior to expiry
  • We prefer monetization transactions of $10 million or more, but we will accept transactions as low as $5 million transaction amount
  • Transaction turnaround time between 10 to 14 working days or less
  • Exceptions can be made to minimum transaction
  • Brokers and intermediaries must have a legally binding agreement
  • A broker must be direct to his client. We will not entertain diasy chain of brokers.

Bank Instrument Monetization is a low-cost, low-risk method of project funding or trade finance that monetizes financial instruments by converting them into cash or cash equivalent by liquidating the instruments.

Monetization converts unused assets into cash which can then be used to fund imports, exports, project financing and international trade transactions.

URGENT NOTICE: It might interest you to know that there are only 10 genuine bank guarantee providers in the world and Kingrise Finance Limited is the leading provider of bank financial instruments such as BG, DLC and SBLC. Contact us if you want to know the list of the 10 genuine bg sblc providers in the world and we will be glad to share that information with you.

8. DESCRIPTION OF BUY/PURCHASE BANK GUARANTEE (BG)

1. Instrument:                BG (Bank Guarantee) Standby Letter of Credit (SBLC), cash-backed, 
2. Total Face Value:          Eur/USD 2 Million (Min) to Eur/USD 500m (Max)
3. Issuing Bank:              HSBC Hong Kong, Barclays Bank London, Deutsch Bank AG, Frankfurt  or any AA Rated Bank.
4. Term / Age:                One (1) Year and One (1) day, Fresh Cut
5. Invoice Price:              45% Net and 47% Gross of the face value of each BG/SBLC to the Seller, including 2% consultancy fees as per IMFPA.

6. Consultation Fee:       In total of 2%, which is to be split and paid to the consultants as follows:

                                       1% to …(Seller’s Mandate).., paid by the Seller/Payer-1

                                       1% to ………………………, paid by the Buyer/Payer-2 7. Delivery of instrument:          Bank-To-Bank by SWIFT MT-760, as per the Schedule of Delivery of Buy-Sell Agreement

8. Payment for instruments:                   By SWIFT MT-103 wire transfer
9. Original Hard Copy:                 By bonded courier to Buyer’s designated Depository Bank within Seven (7) bank working days after receipt of BG/SBLC(s) settlement payment by SWIFT MT-103 into the Seller’s account.

9. BELOW IS THE DESCRIPTION OF LEASE BANK INSTRUMENTS (BG/SBLC)

1. Instrument:               Fully Cash Backed Bank Guarantee {BG} or StandBy Letter of Credit {SBLC}
2. Total Face Value:       USD 2Million (Min) to USD 500m (Max)
3. Issuing Bank:             HSBC Hong Kong, Barclays Bank London or any prime Bank.
4. Age:                        One Year and  One Day (with rolls and extensions where applicable) 
5. Leasing Price:            4%  (+ 2% brokers commission where applicable) 2% broker commission applies to clients that were introduced by brokers
6. Delivery:                   SWIFT MT-760
7. Payment:                  MT103  Wire Transfer
8. Hard Copy:                Bonded Courier within 7 banking days.9. Bank Transmission fee: Depends on the face value of the bank instrument

10. What is the LTV (Loan To Value) for leased bank instruments?

At Kingrise Finance Limited, we offer the best rates in the industry. All our bg sblc are issued from prime banks and we offer 80% LTV.

11. What is the process to obtain or acquire a bank Guarantee (BG)?

The best way to obtain a bank Guarantee (BG) Is through Kingrise Finance Limited. Kingrise Finance Limited was incorporated in Hong Kong on 22-SEP-1999 as a Government Licensed Money Lender with CR No.: 0689078. We are leading providers of Business Loan, SME Loans, Project Financing, Recourse Loan, Non Recourse Loans and Bank Financial Instruments such as Standby Letter of Credit Funding, Bank Guarantee, Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee, Bank Comfort Letter, BG/CD/BD/BCL/DLC/LOC/SLOC/SBLC etc.

We have been providing these financial services to our numerous customers all over the world including importers, exporters as well as customers that need credit enhancements or trade finance facilities to execute projects locally or internationally.

Our loan interest rate is just 3% annually and you can get loan financing from us with or without security or collateral. The loan term is up to 30 years with a grace period up to 3 years for those in the construction industry.

Our bank instruments, bg and sblc/sloc are issued from prime banks such as Barclays Bank London, Standard Chartered Bank, HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP).

We deliver with time and precision as set forth in the agreement. Our terms and Conditions are reasonable, below is our instrument description. As a growing trader, importer or exporter, a bank guarantee or letters of credit from Grand City Investment Limited can help you to close more deals.

The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee will be paid after the delivery of the MT760.

Description OF INSTRUMENTS: (Bank Guarantee BG/ Standby Letter of Credit SBLC)

  1. Instrument: Bank Guarantee (BG/SBLC)
  2. Total Face Value: Eur/USD 5M MIN and Eur/USD 10B MAX (Ten Billion EURO/USD).
  3. Issuing Bank: HSBC Bank London, Barclay’s bank London,Credit Suisse and Deutsche Bank Frankfurt.
  4. Age: One Year, One Month
  5. Leasing Price: 6% of Face Value plus 2% commission fees to brokers.
  6. Delivery: Bank to Bank swift.
  7. Payment: MT-103 or MT760
  8. Hard Copy: Bonded Courier within 7 banking days.
Lease Bank Guarantee providers, Bank Instrument Providers, financial instrument providers, monetizers of bank instruments, international bank guarantee providers, genuine bank instrument providers & sblc providers

Why Choose Us?

  • Fast Turnaround
  • Best Top Rated Banks
  • Competitive Low rates
  • No prepayment penalty
  • 2 Days for Commitment
  • Extremely Satisfied Clients
  • WE KEEP OUR PROMISE
  • 20 Years of Experience & Trust
  • No Personal Collateral Required
  • Solutions for every customer & every industry.
  • Loan amounts from $1 million to over $500 million
  • Fast Approvals & Fast Funding- Closing in as little as 5 days

BROKERS: We welcome new brokers who are direct to their clients. New brokers are welcomed and are rewarded with 2% commission on every deal they bring to us.

Feel free to contact us anytime via Email: info@kingrisefinance.com

Categories
Uncategorized

Hello world!

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!