A bank guarantee is a promise by the bank to cover loss if their customer defaults on their promise to pay or perform as per contract. A bank guarantee can be of various types such as advance payment guarantee, performance guarantee, retention guarantee etc.
An advance payment guarantee is typically used when an importer has paid in advance for delivery of goods at a later date. This guarantee is used to protect an advance payment in case of failure by the exporter to deliver the goods as per contract.
A performance guarantee can be invoked by an importer in case an exporter of goods/services fails to meet the requirements of the contract for e.g. meet milestones.
In the scenario where the beneficiary is not satisfied with the bank that has issued the above mentioned guarantees they seek a counter-guarantee from a bank that they are comfortable with. The bank issuing the counter-guarantee is typically from the country of the beneficiary.
Allows importers of goods and/or services to work with high risk countries without worrying about advance payment / performance.
Forfaiting enables exporters to receive funding by assigning their trade-related receivables secured with trade finance instruments such as a Letter of Credit to a financial institution at a discount. Forfaiting enables the exporter to accelerate cash flow by selling their receivables on a non-recourse basis.
Accelerate your cash flows by discounting your receivables.
A Standby Letter of Credit (SBLC) is issued by a bank guaranteeing payment on behalf of the LC applicant (buyer) in case they fail to fulfil a contractual commitment with the LC beneficiary (seller). Buyers credit can be availed against an SBLC as the underlying security.
Avail for Imports under DA/DP where UPAS and RA structures cannot be used. Can be availed post shipment so no pre planning is needed.
No changes needed in the commercial contract nor does the exporter need to participate.
In the corporate space, we provide bank-neutral views, structured financial solutions and off-balance sheet solutions to clients for improving financial structure and efficient use of funds. Our endeavor is to provide a distinct bottom line advantage to our corporate/SME clients through a mix of traditional and non-traditional sources of funding.
In the financial institutions space, we provide services to banks and non-banking financial institutions in the area of risk mitigation techniques, Export Credit Agency business, trade finance origination & distribution and raising long term liabilities.
We actively use Interlinkages Online, our B2B cross-border trade platform, for better distribution, disintermediation and cost-effective delivery of financing solutions.
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