BANK OF CHINA GLOBAL WEB SITE
ENGLISH | 简体中文

 



   BOC Singapore >> Corporate Banking >> Trade Finance >> Bank Guarantee

Payment Guarantee


 

Introduction

Payment guarantee is issued to guarantee the applicant’s payment obligation in an underlying contract of sales or purchase of goods, services, rights, etc. 

Product Features

1) Mitigate mutual distrust of parties involved in contract.

2) Guarantees payment in a contract.

3) Reduce initial cash outlay in a contract if cash deposit is otherwise required.

4) Improves liquidity and increase the contractor or supplier’s market competitiveness.

5) Commonly required in commercial contracts eg. sales and purchase contracts of goods, services, rights, technology know-how or in construction projects, etc.

Application requirements

1) Legally registered in Singapore.

2) Maintain current account with our bank.

3) Companies must posses the proficiency in performance under the contract.

4) A credit facility or at least 100% cash margin or deposits must be provided(must be pre-arranged with the bank).

5) The format of the bankers guarantee that is to be issued must be acceptable to the bank(the format is subjected to review by the bank’s Legal Department).

Application Procedures

1. Applicant submits banker guarantee application form together with the documentary evidence showing the need for the Payment guarantee eg the commercial contract.

2. Applicant remits the cash margin or deposits into the Bank and submits the required documents eg deposit slip or Letter of set-off or Charge documents.

3. The bank evaluates customer and transaction information.

4. The bank reviews the banker guarantee application form, the format of the guarantee and checks the security documentation ie Letter of set-off, Charge documents, etc.

5. The bankers guarantee is issued.

Download Forms

Form_Banker's Guarantee Application & Indemnity.doc

  [ Close ]

 
· Forfaiting
· Export Bills Processing under Documentary Credits

Trade Finance

     Trade Finance
     Trade Settlement
     Bank Guarantee



 
  ·BOC’S PERSONAL DATA PROTECTION POLICY  ·Data Protection Notice  ·Terms & Conditions  ·Copyright  ·Contact Us  
 
Copyright © BANK OF CHINA(BOC) All Rights Reserved.