An Indian trader who deals with construction supplies received a deal to supply cement in 50kg bags to a client in Liberia. The Liberian company wanted a lot of cement on an urgent basis upon the assurance of the surety bond.
Problem: An Indian Trader Needs Surety bond
The buyer asked the seller to provide them a 2% Performance Bond of the contract value. Once the buyer received a 2% performance guarantee, they have to open a Letter of Credit in favor of the seller. The seller didn’t want to lose this chance for a huge profit. So they wanted to obtain a Performance Guarantee to get this cement deal.
Finding the right firm that issues such a guarantee was not as much easy. Their request for Performance Guarantee to some banks turned down. So, they searched for some private sectors which could provide such a guarantee. But all required a lot of documents & had a lengthy process.
Challenge: Avail Surety Bond
To their good luck, they come across a newsletter from BWT Dubai. By reading it, the trader found that BWT is one of the Performance Bond providers.
At first, they were hesitant to contact us due to their bad experience with a similar kind of company. Even, they have decided to choose BWT; as our newsletter gave them a ray of hope.
Result: How Cement Deal Made Possible?
The trader found BWT friendly due to the simple process along with a diagram stated on our website. They filled the website form; also sent the pro forma invoice along with other documents of their cement deal.
Our team reviewed and approved their request. And then we informed the Indian trader about the admin fee and issuance fee to start work on their request. They soon chose to transfer the PB issuance fee to BWT’s bank account.
Upon receipt of PB issuance fees, we processed their request on the same day. Also, our bank acts promptly to issue the said guarantee to the buyer’s bank in Liberia.
After receiving the guarantee, the buyer requested their bank to open the LC in favor of their cement supplier.
Further, after receipt of Performance Bond and Letter of Credit, both parties were relieved as their deal was secured with financial tools. As well, the Indian trader was grateful to us as we helped them to win their cement deal.
Do You Need Surety Bond to Secure Your Deal?