International Bank Guarantees is a written undertaking issued by a bank as a commitment to assure the payment to the seller; in case of failure of payment terms from the buyer’s end.
Bank Guarantees play a vital role in the global trade market by creating assurance between the buyer / the seller. Bank Guarantees will give confidence among the contractors and traders that their trade deal will end up well without any hitch.
To bring a clear outline of the Letter of Guarantee, here we have come with an example. For instance:
– Company X requires $4 Million worth of equipment to increase its production. And Company Y is ready to supply, as requested by the buyer. But to proceed with this, the seller requests a Guarantee Letter from the buyer; that assures the payment on time and secures the shipment of goods. Also, MT760 reduces the risk of payment failure; as well as promotes bulk trade between buyers and sellers.
And so, this enables more small & startup enterprises to do businesses with large sellers; that couldn’t happen without Bank Guarantee; due to the risks involved in global trade deals.
Benefits of International Bank Guarantee
- Allow traders to provide assurance to their counterparties; that they can meet their fiscal terms without fail.
- Improves credit status and fiscal strength of the buyer; as Bank Guarantee backed by Good Repute Banks.
- No need to tie up your working capital in one deal, so you can expand your business by doing more deals at a time.
How to Get Bank Guarantees
Bank Guarantees are most commonly used in large trade deals. With a Letter of Guarantee, the buyer can be able to purchase heavy machinery, equipment, acquire funds, and so on for real estate purposes. Further, by issuing a Guarantee Letter on behalf of buyers, the Banks stands acts as a guarantor between the clients, to reduce the risk of any default in the shipped goods.
To avail Bank Guarantee, one should have a good fiscal record and a good credit score. As well, they are required to maintain enough cash balance in their account to block as margin money. But, in certain cases, the traders can’t able to provide a cash margin to avail Guarantee on their behalf. Here comes, Bronze Wing Trading L.L.C., the International Bank Guarantees Provider in Dubai.
Being Bank Guarantee Providers, we assist traders to avail Letter of Guarantee at ZERO Collateral. So, if you’re looking to avail MT760 without blocking cash funds, contact us today!
We have years of expertise in providing Bank Guarantees for contractors and traders. Also, we are in contact with rated banks, so, we can process your Guarantees in almost any country in the world.
Get started today by availing Bank Guarantees from us & get ready to sign worthy contracts and trade deals!
Do You Require a Bank Guarantee to Sign New Trade Deals?