Types Of BG/SBLC We Issue
BG/SBLC is a type of collateral that can be used in managing various kinds of risk. BG/SBLCs are classified by the kind of risk they cover. We can issue any type of BG/SBLC as below:
- Payment Guarantee: A payment guarantee is used to guarantee the seller that the buyer will fulfill its payment obligations as stated in the contract.
- Tender Guarantee: A tender guarantee (bid bond) is used for participation in international tenders, such a guarantee covers the organizers’ expenses in the case when a participant revokes its bid or does not accept the offer.
- Performance Guarantee: A performance guarantee is used to strengthen the contractual relationship between a buyer and a seller. It guarantees compensation of the agreed-upon amount in case the delivery terms or other contractual obligations of the seller are not fulfilled as agreed upon in the contract.
- Advance Payment Guarantee: An advance payment guarantee is used when the contract provides for advance payment to be made to the seller, and it guarantees that the advance payment will be returned to the buyer if the seller does not fulfill its obligations on delivery of goods or services.
Have any questions? and we’ll be in touch with you within 1 working day.
Bank Guarantee (BG) / Standby Letter Of Credit (SBLC)
A Bank Guarantee (BG) / Standby Letter Of Credit (SBLC) is an unconditional undertaking given by the bank on behalf of our client that their liabilities will be met in the event that they fail to fulfill their contractual obligations.
Our BG/SBLC Description
Format: URDG 758 / ISP98
Term: Fresh Cut
Validity: One (1) Year And One (1)
Face Value: 1M – 10B
Issuing Banks: Top Rated Banks
Hard Proof of Funds & Verification of Deposit (VOD)
Bank Statement Proof of Funds
Sometimes an offer with a standard Proof of Funds Letter is not accepted — the seller wants stronger proof that you do indeed have the funds available for this purchase. Typically the seller will want a current Bank Statement showing that there is cash available in an account that will be made available to you to close on the purchase of a house. This is quite common when making a purchase offer for an REO or a HUD home.
KapitalBanc Funding can provide this service for you. We can offer you a Bank Statement or Investment Account Statement accompanied by a letter that states that the funds shown on the Statement are available for you to close on the purchase. We will also be happy to verbally verify with the seller that these funds are available for you.
For this service, we charge 1% of the total loan amount and a minimum of €500 for admin & account opening. This fee must be paid in advance of our issuing the Hard Proof of Funds with the accompanying Bank Statement. To order this service, please contact us.
We do not recommend that you use this service unless you already have an offer accepted and the requirement of producing a bank statement is all that is keeping your offer from being accepted. Plus, you should either have a C Buyer lined up or feel strongly that you can find a C Buyer and earn a profit from this transaction.
Please note that using this service does not obligate you to ultimately use us to fund this transaction when it comes time to close. By the same token, we are not obligated to provide you funding.
Line of Credits
Overseas counterparties can obtain extended payment terms at rates linked to LIBOR through Buyer’s Credit.
Please contact us for more information: Contact us