BANK GUARANTEE AND LETTERS OF CREDIT
Financing Criteria
Per project whereby the scale and risk of projects necessitate a specialized approach
depending on assets, cash flow, and revenue.
Bank Guarantee (BG) and Letters of Credit (LC) are financial instruments provided by banks to facilitate international trade and various business transactions. While they both involve a bank's commitment to pay a specified amount under certain conditions, they serve different purposes and are used in different contexts. Both Bank Guarantees and Letters of Credit play crucial roles in trade finance and risk mitigation, and their usage depends on the specific requirements and agreements between the parties involved in a transaction.
Bank Guarantee (BG)
A Bank Guarantee is a commitment issued by a bank to guarantee a payment or performance
obligation on behalf of its customer (the applicant) in favor of a beneficiary.
Types of Bank Guarantees we offer:
Ensures that a party fulfills its contractual obligations
Provides financial security for a bidder during a tendering process.
Guarantees the repayment of an advance payment
received by the beneficiary.
Assures payment to the seller in the event of the buyer’s
default.
Letter of Credit (LC)
Letter of Credit is a financial instrument issued by a bank at the request of a buyer (applicant)
to pay a specified amount to a seller (beneficiary) upon the presentation of a compliant
documents
Types of Letters of Credit we offer:
Cannot be modified or canceled without the consent of all parties involved.
Can be modified or canceled by the issuing bank without prior notice to the beneficiary.
Involves an additional bank (confirming bank) adding its confirmation to the LC, providing an additional layer of assurance to the beneficiary.
Our Target Clients
We offer credit enhancement instruments to all types of large business projects and support
export and import operations.
❖ Our Service areas
Our instruments target investors acting in different capacities as follows.
• Principals (Debtors) i.e. Developers
• Beneficiary (Creditors) i.e. Service Providers
• Third Party Guarantors
❖ Minimum Requirements
We require the following information from the contractor [awardee]:
• Company Name
• Postal Address
• Mobile Number
• Procuring Entity [Employer] Name
• Procuring Entity’s Address
• Performance Bond Amount
• Award Letter from Employer
• Bank Statements [up to 6 months]
• Portfolio of previously completed contracts/jobs
• Tender Description [Title]
• APG Validity [Period]
• Completed Application form
NB: Each business is considered on its merits and the potential profitability of the business