Respond to the shortage of medical products and devices to tackle the coronavirus pandemic, a US trader decided to import Medical devices from Germany. To support them in this deal, we, the Bank Guarantee Providers in Dubai used our own bank facilities to get the required Bank Guarantee Letter on behalf of the buyer without blocking their capital.
The Client Required Bank Guarantee Letter:
The crisis caused by the COVID-19 created a lack of medical devices such as PPE Supplies, ventilation, oxygen gas cylinders, etc. needed to fight against the virus. In response to this, the US trader decided to import medical devices; and then supply it to the local market.
EU Countries are ready to export medical supplies outside the EU. So, the US trader started searching for a vendor from EU-28 Countries. While searching, they came across a vendor from Germany; who is ready to supply Medical devices. And to proceed with this, the German vendor asked the US trader to provide a BG MT760; so that they can sign the medical device import contract; with the confidence of payment guarantee.
The challenge to Avail Bank Guarantee Letters:
Understanding the urgency of the deal, the US trader contacted their bank with their BG request. But due to the economic recession that happened after COVID-19; the banks were not ready to provide the MT760; i.e. without any kind of security or collateral. Since the trader’s business was also facing detriment for the past 6 months; they didn’t want to block their working capital for the deal.
And this made the trader take a decision to look for a trade finance provider; from where they can get MT760 without investing funds. They started searching Google and came across our website. They visited our website, read the BG Process. Further, they submitted their BG request to us.
How We Provided BG Letter:
After submitting their BG request, the trader contacted us via phone. Since they wanted to discuss with us in detail; our trade finance team arranged a virtual meeting with them via ZOOM. The trader clearly explained their requirements to us. And from our end, we studied their deal; also explained the entire process to get BG MT760 on their behalf. Since the trader felt satisfied, we proceed with the next step. Further, we sent the service agreement to be signed by the trader; also asked them to pay the service charges. The client signed the agreement and paid the service charges.
Our team structured their deal and sent the BG draft for their review. On the same day, the client approved the BG draft; also paid the issuance fee. Once the invoices are cleared and all the documents are received; then we instructed our bank to SWIFT the Bank Guarantee Letter to the seller’s bank.
Outcome: The US Trader Signed the Contract with the German Supplier
After receiving the MT760, the buyer and the seller signed the import contract. The US trader conveyed their thanks to us; as we have provided such great service and support to them; by providing Bank Guarantee Letters from European Banks.
Do you require BG MT760 from Rated Banks to sign a commodity supply contract? Submit your requirements to us; we will do our best to structure your deal!
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