Why should you apply for a bank guarantee?

A bank guarantee means an agreement provided by a bank or other commercial entity that will take care of the bank or finance company's losses if a particular defaulter refuses to return a refund. The bank will guarantee the issuer through this bank guarantee that the bank will take care of them if the defaulter does not reach its duty.


Advantage of Bank Guarantee
 
Go through the below mention points and you will easily understand the benefits of a bank guarantee.
  • As a business person, if you apply for a bank guarantee, you will need to submit very few documents and you are not required to make the advance payment in case of a bank guarantee.
  • Bank guarantee is an agreement or a promise between three parties - the bank itself, the applicant, and the beneficiary. It helps to have a beneficiary’s vetting for your business.
  • As an owner of a restaurant, if you want to buy huge kitchen equipment from another company. The equipment vendor requires you to submit a bank guarantee to cover payments before delivery of the equipment. In this case, you have to go to your bank and request a bank guarantee. This guarantee paper helps you to buy huge equipment from another source. It means if fail to pay money; your bank will pay for you. This kind of bank guarantee helps to enhance the business and make a tight relationship between buyers and sellers.
However, there are usually two types of bank guarantees, such as Performance guarantee and financial guarantees. Both are secure processes. Several business-owners take these facilities regarding cash transition. You can also choose anyone for money transition. However, do you want to learn more about the bank guarantee? Read the following paragraph.

Keep in touch with an Investment bank group for bank guarantee papers
 
Are you looking for a reliable guarantor for bank guarantees in Thailand? Then contact – ‘OXFORD Investment Bank Group - Bangkok, Thailand’. They provide a wide range of financial services to individuals and businesses. Their independent investors and consumer service professionals are supported by a strong operations infrastructure, a large range of wealth management services, an international network of partners, and representation in major business hubs throughout Asia, North America, and the Caribbean and globally. To learn more visit -
oxfordinvestbank.com here.

Comments

Post a Comment

Popular posts from this blog

Enjoy the growth of your business with the help of financial guarantees

Image
Financial guarantees are an agreement by a third party to back the liability of a second party for its payment to the ultimate investor. But, here is a twist, a financial guarantee does not always cover the whole amount of debt. It might guarantee to back only the principal or the interest but not both. If you are a business owner and, you are going through a bad financial condition, you can take the help of this kind of service provider. In Thailand, you will get a lot of companies, but selecting the reliable one is indeed stressful. But, friends, no need to be worried! From this piece of writing, you will get to know the contact information of the right service provider. But, prior to knowing the name, make out some important things about this service. Scroll down to the subsequent passage right now.     Things you need to know about financial guarantee Financial guarantees are helpful to lenders in attracting investors. The investors enjoy peace of mind that the lender will repay
Read more

Brief advantages of Standby Letter of Credit in Thailand

Image
For the growth factor of international dealing, reliability is an important factor. In Thailand for a hazardless business deal, there are many companies to provide support for such deals. In this matter, this third party financial institute other than the buyer and the supplier has a great role. The company gives an assurance about the fulfilment of the payment to support the client through a Standby Letter of Credit in Thailand. Now get to know some information about this guarantee from the below passage. The concept of the Standby Letter of Credit The standby letter of credit is the full form of the term SBLC or SLOC. This is a legal document that issues a bank or financial institute. It is a guarantee about the payment of the exporter. That’s why standby letter of credit worth for any seller for international trading and it is the reason for the popularity of this guarantee in Thailand. To know the helpfulness of this guarantee, keep reading upcoming paragraphs. Advantages of
Read more

Performance Standby in Thailand | Definition with Easy Examples

Image
Before we discuss performance standby in Thailand, we need to talk about the Standby letter of credit. In today's article, we will discuss both topics with examples.  To learn more about it, read this article to the end. A standby letter of credit: A Brief note with an example Well, SLOC is an arrangement in which a bank guarantees payment to a "beneficiary" if something fails to happen. For example, A vendor sells her textiles to an external client who commits to pay within 40 or 60 days. If the amount never arrives, and the exporter required the buyer to use a standby letter of credit, the seller can collect cash from the importer’s bank. Before releasing the letter of credit, the bank often checks the importer’s credit and decides that the importer will pay back the bank. But if the customer’s credit is in dispute, banks may require funds on deposit for a green signal. Performance Standby in Thailand: A Brief Note with an example Performance SLOC ensures statutory
Read more