Bank Guarantee Services For Trade Transactions

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Issuing Bank Guarantee For Trade Transactions

Bank Guarantee Services By Axios Credit Bank Ltd

A bank guarantee is a commitment given by the issuing bank or financial institution to cover the losses if their customer ie. the buyer defaults or is unable to pay the seller. 

This way, bank guarantee services shift the risks of payment from the buyer to the guaranteeing bank, and prove the buyer’s credibility to the seller regarding timely & full-fledged payment.

In short, it is an authorization from a bank or FI that the liabilities of a buyer will be met and payment will be done only in case the buyer fails to do so. The buyer requests a bank to issue a BG in favor of the seller and a bank guarantee transaction consists of a bank/FI offering to repay the seller in the event of its applicant’s inability. 

Types of Bank Guarantee We Offer:

At Axios Credit Bank, you can apply for a range of bank guarantee services, namely:

  • Standby LC
  • Payment Guarantee/Loan Guarantee
  • Performance Guarantee
  • Advance payment Guarantee
  • Deferred payment Guarantee
  • Bid Bond Guarantee
  • Shipping Guarantee etc.

Application Procedure

This is how it works:

Step 1 - Buyer sends an inquiry to Axios Credit regarding obtaining our bank guarantee services. We run a deep scan of his/her business, requirements, & trade agreement. And suggest the suitable types of BG.

Step 2 - The next step is to present us with the proforma invoice to detach with the bank guarantee document that we issue. It contains importers' & exporters’ important details, the title of the documents, proforma invoice number & date as well as the definition of goods, etc

Step 3 - Buyer fills in the necessary information in a BG Application Form such as seller’s details (Name, Address, Country, Contact no, Email id), BG agreement (Amount, expiry date, date of origin, type of goods, mode of payment, etc), and shipment details (Place of receipt, port of landing), etc.

Step 4 - We receive the BG application and issue a draft of BG to get it evaluated by parties to a trade ie. seller & buyer. After getting approval, we issue a payment invoice highlighting our charges for BG services.

Step 5 - If the applicant agrees to the draft & quoted price, we generate indemnity documents containing contractual obligations between the parties.

Step 6 - Once we receive the payment, the final BG document is forwarded to the buyer and its confirming bank.

Step 7 - An escrow account will be opened to hold the payment of the export shipment.

Step 8 - The buyer verifies the payment and we instruct the seller to ship the goods. We, then, present the shipping documents to the buyer to get the approval of the same.

Step 9 - Upon the buyer’s approval, we pay the seller and send the original documents to the buyer.

When an applicant ie. or buyer enters into a trade transaction with the seller to reduce the risk of payment & delivery of products/services, we provide them with suitable, reliable & customized BG services.  This is how we help buyers & sellers complete a trade transaction safely without facing payment or performance failure. Contact us now.

Bank Guarantee Benefits

Our bank guarantee services help buyers:

  • Provide secured payment assurance to their existing or potential suppliers.
  • Prove financial stability & credibility to foreign sellers.
  • Reduce the financial/performance risks in international trade transactions 
  • Expand business in the global market. 

Why Axios Credit Bank Ltd?

We at Axios Credit Bank Ltd understand its role as a trade finance instrument for buyers & sellers. Thereby we provide bank guarantee services promptly while cutting back complicated paperwork. Tell us your requirements and we will help you issue a BG for a specific period (minimum 6 months). 

Axios Credit Bank Ltd is a reliable, and leading platform facilitating advanced & customized trade finance services including Letter of Credit/Standby LC, Bank Guarantee, and Documentary Collection, etc. at affordable rates. We are helping worldwide importers & exporters avoid the risk of non-payment & non-performance with our range of instruments.

In a trade transaction, supported by a BG, we act as a guarantor and commit to compensate the seller for the delivered goods/services in the event the applicant i.e. buyer fails to do so. Our BG services help the worldwide importers to ensure their credibility for the exporters who are not willing to put their payment at stake since both are unfamiliar with each other. 

Get access to our range of safe, secure, and reliable bank guarantee services supporting sellers both domestic and across the borders to execute a trade with peace of mind. Contact Axios Credit Bank Ltd to obtain your bank guarantee for your next trade transaction at a reasonable cost. Our experts will help you provide a suitable, & appropriate BG with minimum hassle. 

Contact Us
Call us now: +65 3158 1809 Or
Click here to apply for our Bank Guarantee / Standby Letters of Credit