Lease Bank Guarantee providers, BG SBLC Providers, Bank Instrument Providers
Kingrise Finance Limited are Lease Bank Guarantee providers, BG SBLC Providers, Bank Instrument Providers, financial instrument providers, monetizers of bank instruments, international bank guarantee providers, genuine bank instrument providers & sblc providers.u00a0 TABLE OF CONTENTS1. 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.u00a0u00a0A bank guarantee acts similarly to a line of credit, except that a line of credit can be drawn upon at will by the banku2019s 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.u00a02. Types and Examples of Bank GuaranteesThere 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 Bondu00a0serves as collateral for the buyeru2019s 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.u00a0 Kingrise Finance Limited essentially cosigns the purchase contract with the vendor.bank guarantee provider- Kingrise Finance LimitedKEY TAKEAWAYSA 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 bank4. 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. What is the process to obtain or acquire a bank Guarantee (BG)?One of the easiest and best ways 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). Email: info@kingrisefinance.com Website: www.kingrisefinance.com Blog: https://kingrisefinance.blog
106 views • 9 slides
