Bank Guarantee Process
Follow the Bank Guarantee Process mentioned below to avail BG MT760 from Rated Banks without blocking cash funds:
1. At first, the buyer presents their trade deal by sending a buy and sell agreement or proforma invoice for their trade deal or project.
2. Further, we will review the trade deal between the buyer and seller. And also will inform the party if the request is approved or not.
3. And then, if approved, we will prepare the service agreement between the client and us. After that, we will forward it to them for their signature. Meanwhile, we will also inform them about the service charges to issue BG MT760 on their behalf without blocking their cash funds.
4. Further, following the signature on the agreement and payment of service charges, we will start working on their deal.
5. Further, we will send the draft of the BG MT760 to the client for their review.
6. Upon receipt of the issuance fee and documents, we will open a BG from our account (European Bank). Finally, it will transmit via MT760 swift to the supplier’s account.
Apply for BG MT760
Bank Guarantee Video
Irrevocable Bank Guarantee
Bank Guarantee MT760 is a written undertaking by a bank on behalf of their client to assure their payment. Also, the client requests to issue such assurance, once they want to procure several goods from a seller. As a result, the buyer assures their payment by providing BG MT760 in favor of the seller.
MT760 helps companies to do trade globally that they would not be able to make it without BG. Thus, BG MT760 assists to acquire goods, draw down loans, and also secure contracts or leasing agreement without tying up cash capital. Certainly, this is the way most of the firms manage and expand their business worldwide.
In case, if the seller is unable to supply the product, they will pay the penalty to the buyer, as per the agreed amount in their contract. In effect, the BG serves as a surety for both the parties i.e. buyers and sellers.
As a guarantor, the BG issuer will be liable to handle the debt & demands arise on their client’s behalf. In addition, prior to the issuance of MT760, the rights of both parties will be written in the contract.
Likewise, suppliers often prefer to do business with their clients who can provide them a BG. Because having MT760 reduces the financial risk of the payment for the products they supplied. Furthermore, it also helps business firms to establish credibility with their new suppliers.
Generally, BG MT760 can be assigned to the 2nd party, upon request from the first party. The MT760 assignment details (i.e. the assignment amount and the date) must be informed to BG issuing bank.
Parties Involved in BG
- A buyer or importer, known as the Applicant.
- The authority who issues the requested BG is called as Issuing Bank.
- The seller or exporter is the Beneficiary of BG.
- The authority who receives the BG on their clients’ behalf is called the Beneficiary Bank.
But in the case of construction projects, the contractor needs to provide BG to the developer to prove their creditworthiness. Thus, this assures, they will perform the work without any default or delay. Usually, the project owner requires a fiscal bond from the contractor to ensure that, they will complete the project as per the agreed contract.
Types of Bank Guarantee
This Payment Guarantee issued by a bank serves as a commitment between the buyer and the seller. Also, this assures the payment made upon the shipment of goods. Similarly, such types of guarantees are mostly used in global trade. And, this serves as a surety, in case of default.
This is issued by the seller in favor of the buyer. In brief, this bond compensates, if a seller fails to perform as per the agreed contract. Accordingly, for which, the buyer needs to claim against this bond from the seller’s bank. However, the buyer can claim only a certain amount i.e. around 2% to 5% of the total contract value.
When a seller asks for an advance payment, the buyer can demand APG MT760 from their seller. Also, this is to secure the advance payment; in case the seller fails to fulfill their terms as set in the contract.
This type of MT760 normally a commitment from a tenderer to execute a contract in case if awarded.
Bank Guarantees in International Trade
- Allow the buyer to secure better contracts or trade deals.
- There is no need to make an advance payment or tying up all your capital in a single deal. So, you can spread around and can do multiple deals at a time.
- Less paperwork required, so you can focus on your core business.
- The seller will able to perform quickly without asking for advance payment. Also, it protects them against the risks involved in the non payment of goods.
- And also, the buyer gains reliable trader status in both local and global markets.
BG MT760 Cost
The cost mainly includes commission, negotiation fee, and also transmission charges. In addition, the MT760 fee is usually paid by the applicant. On the other hand, the negotiation fee paid by the other party.
Further, to get more details on the tariff, contact us now!
International Bank Guarantee Providers
Do you require some sort of financial security that proves your credibility and allows you to acquire more contracts internationally?
Avail BG MT760 from Bronze Wing Trading L.L.C. to expand your business globally! We help business firms to avail lucrative contracts by providing them BG MT760.
Being a Bank Guarantee Providers in Dubai, we work directly with international banks to issue the guarantee you require. Also, with our strong position in the trade finance industry and over 25,000 plus satisfied clients; we provide a speedy and hassle-free process for issuing bank instruments on your demand.
Submit your request online to avail MT760 and our team will be in touch with you ASAP.