Leased Bank Guarantee (BG)
SERVICE AND INSTRUMENT DESCRIPTION:
Bank Guarantees can be used as a successful tool to secure financing for your projects. These are typically used in global finance, trade finance, credit enhancement, project finance, and so much more. Although these are successful tools, it can be hard to secure them. It is almost impossible for small businesses to receive cash funds from investors who are required for BGs.
However, you can rely on a Leased BG which can be found at many different institutions. Most people are unaware that this is even an option.
You can have access to the cash-backed BG of another party for a fee, or a lease. When this term has concluded you can extend it, or it is returned to the original holder.
The asset holder will enter into a joint ownership with the potential borrower, or this asset can be transferred over completely. This assures that there will not be a problem with the ownership of the account.
The leased BG will give the same rights to the account holder during the term. The new owner can encumber, place a lien, monetize, and use this account for security purposes.
Leased Bank Guarantee (BG)
We provide Leased BGs from some of the top banks in the world and utilize Bloomberg, Euroclear, DTC screen block and pay and the SWIFT network as well. We use SWIFT MT799 to deliver bank to bank leased guarantees, as well as SWIFT MT760.
We Protect Our Client Deposits Fully Through 2 Levels of Protection
You never have to worry about your security with our two levels of protection:
A Two Percent (2%) Non-Performance Penalty
This Refund Deposit Program protects our clients and makes sure that the deposits are completely safe.
16 Reasons to Leased Bank Guarantees from Us!
(1) Our Program Operates with the Top 100 Banks of the World
Deposit Requirements for Leased BG’s via SWIFT:
Deposit Requirements for Leased BG’s via EUROCLEAR & BLOOMBERG delivery:
Estimated Completion Time:
SWIFT Closing Process
1. The Beneficiary and provider sign the contract initiating the memorandum of understanding and the letter of intent. This enters them into a contractual agreement.
2. During an upcoming day of business the providing bank will endorse the agreement, granting the beneficiary payment for:
3. The Beneficiary’s institution has two days to send the payment of the reservation cost, SWIFT delivery, etc. by a wire transfer. Then a receipt of this transfer is emailed to the provider.
4. The Provider’s Bank has three business days from the receipt of the the itemized list of costs to issue payment and delivery to the beneficiary’s institution.
5. Within ten business days the Provider must send MT-799 Pre-Advice to the beneficiary’s bank, and email a copy to the beneficiary. This is to conclude whether they are ready to receive the SWIFT MT103, which must compete within 5 days.
6. Within three days the receiving bank must state confirmation of the receipt and note that they are ready to receive the SWIFT MT760, and will pay within 5 days.
7. Within three days the provider’s institution will send the BG through the SWIFT MT760.
8. When the receiving bank has received the BG, they will confirm this with the other bank and will pay within 5 days 18%, which includes a 2% consultant fee.
9. If the beneficiary foes do not pay the payments, then the Provide will place a claim on the BG which causes the receiver’s institution to return the BG through SWIFT MT760. Any payments that have been made will not be refunded.
10. The provider’s bank has one week within the reception of the payment of the BG to send a copy of the BG to the beneficiary’s bank through a courier that is bank-bonded.
11. Any additional tranches will abide by the same procedures and will continue until the funds have been depleted.
Important: Our contracts have a clause that requires the purchaser to return the Leased Bank Guarantee (BG) to the institution that issued the BG no later than 15 days before the first year anniversary of the contract. This is required of all leased bank guarantees.
Euroclear & Bloomberg Closing Process: