What Is A Lease Bank Guarantee (BG)
Bank Guarantee (BG).
A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. The guarantee lets a company buy what it otherwise could not, helping business growth and promoting entrepreneurial activity.
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A bank guarantee is a contract between 3 different parties and they include:
(1) The applicant (the party that requests a bank guarantee from the bank and borrows from a creditor)
(2) The beneficiary (the party that receives a partial guarantee)
(3) The bank (the party that agrees to sign and assures payment in case the applicant fails to repay the loan)
Bank guarantees are very commonly utilized among business entities. With the help of a bank guarantee, the debtor or borrower or customer will be able to purchase equipment, machinery, raw materials, acquire additional funds, etc. for commercial purposes. Bank guarantees help businesses as creditors will get a proper reassurance that the loan amount will be repaid by the bank if the business is unable to repay the loan entirely on time.
When a bank signs a bank guarantee, it promises to pay any amount according to the request made by the borrower. Hence, signing a bank guarantee implies a high risk for banks.
BECTIC FINANCE COMPANY LIMITED
website : becticfinance.com
Email : info@becticfinance.com
A Lease Bank Guarantee (BG).
A leased bank guarantee (BG) is the cash-backed bank guarantee of a third party for a fee. An issuing bank will lease a guarantee to a customer it has deemed to be creditworthy for a set fee and over a certain period of time.
The issuing bank will send the guarantee to the borrower’s main bank, and the issuing bank then becomes a backer for debts incurred by the borrower, up to the guaranteed amount.
Understanding Leased Bank Guarantees.
Leased bank guarantees tend to be very expensive; fees can run as high as 15% of the guarantee amount every year. The fee usually consists of an initial setup fee and an annual fee, both of which will be a percentage of the dollar amount that the issuing bank “guarantees” (or covers) in the event that the company is not able to promptly pay its debts.
Smaller enterprises typically only use this option for financial backing (particularly those who are desperate to expand operations and/or fund a specific project). These enterprises will have typically exhausted other opportunities to raise financing or obtain a letter of credit from their own bank.
Why is it called ‘Leasing’ Bank Guarantee?
The word ‘leasing’ when regarding to Bank Guarantees and Collateral Transfer is a misnomer and should be avoided.
KEY TAKEAWAYS.
A leased bank guarantee (BG) is the cash-backed bank guarantee of a third party for a fee.
An issuing bank will lease a guarantee to a customer it has deemed to be creditworthy for a set fee and over a certain period of time.
The issuer sends the guarantee to the customer’s primary bank, taking the role of backer for any debts the customer accrues, up to the amount that has been guaranteed.
Fees, which typically include an initial setup fee and an annual fee, tend to be expensive relative to the guarantee amount and compared to other types of financing.
Smaller corporations tend to use leased bank guarantees, particularly when they are unable to secure another type of financing.
Leasing Bank Guarantees (BG) or Leasing Standby Letters of Credit (SBLC’s) are common phrases associated with Collateral Transfer. However, leasing is not really the correct term to use as it is not possible to actually lease a bank guarantee in this manner, hence it is a misnomer.
We use the term loosely as its process is almost exactly that of commercial leasing. In effect, the Provider offers temporary ownership of his assets to the Beneficiary in return for a fee and at the end of the term the assets revert back to the ownership of the Provider. The assets are used to raise specific and non-transferable bank indemnities which the Beneficiary may utilize.
The use of the term ‘leasing’ Bank Guarantees is however inaccurate as in effect no leasing takes place. Through a Collateral Transfer Agreement, a Provider will agree to place his assets with a facilitating bank. The bank will charge the asset and will raise a bank indemnity against it in favor of the Beneficiary. This bank indemnity will commonly be in the form of a Bank Guarantee issued specifically for the purpose to the Beneficiary.
These Collateral Transfer (C/T) facilities are useful for when a business needs to import or create security (collateral) to underpin credit lines or loans, otherwise referred to as monetization.
Get a Leased BG today!
Service Description:
Bank Guarantee can be used as a successful toll to secure financing for your projects. These are typically used in global 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 require a BGs.
You can have access to the cash-backed BG of another party for free or a lease. When the term has concluded, you can extend it or return it to the original holder.
The asset holder will enter into joint ownership with the potential borrower, or this asset can be transferred completely. This assures that there will not be a problem with the ownership of account.
The leased BG will give the same right to the account holder during the terms. The new owner in cumber, place a lien, monetize, and use this account for security purposes.
Lease Bank Guarantee (BG)
At BECTIC FINANCE COMPANY LIMITED we provide BGs from some of the top banks globally and utilize Bloomberg, Euro-clear, DTC screen block, and the SWIFT network, We use SWIFT MT799 to deliver bank-to-bank leased guarantee, as well as SWIFT MT760.
WE PROTECT OUR CLIENT DEPOSIT FULLY THROUGH 3 LEVEL OF PROTECTION
You never have to worry about your security with our three levels of protection:
- A Two percent (2%) Non-performance penalty
>Two percent (2%) danage fee will apply to a party that fails to perform. The 2% shall apply in both cases, either when the provider has sent a Corporate invoice with the Beneficiary’s Bank will not respond or pay, and/or when the Beneficiary Bank is ready, willing and able to receive the BANK INSTRUMENT, and no Bank BANK INSTRUMENT is delivered from the providers Bank by SWIFT MT-760, DTC, Euro-clear or Bloomberg. - A Program to Refund Deposit(all our agreements are Bank Endorsed(confirmable) with full Bank responsibility as an insurance wrap)
With Our agreement with banks, that bank becomes responsible for payment when the transaction becomes complete.
- Attorney Client Trust Account.
Once your agreement is approved by the compliance department, and bank endorsed the payment is to be made ONLY AND EXCLUSIVELY to the ATTORNEY’S OFFICE TRUST ACCOUNT. These banking coordinates will be provided directly from BECTIC FINANCE COMPANY LIMITED compliance officer(CCO) and they will be included inside your invoice.
14 Massive Advantages when Buying a Leased Bank Guarantee (BG) from us!
Program operated with Bank Guarantee (BG) from Top 100 World Banks
Leased Bank Guarantee (BG) are available in Euro Currency
Low Leasing Rate of 8+2 (10% Total)
BG Deposit is paid in 3 Stages Payments as the BG is Delivered
10 Days to Complete Full Payment after Delivery of MT760 to your Bank.
MT799 Pre advice Included with Leased Bank Guarantee (BG) Delivery
No Personal or Corporate Credit Checks
No Project Documentation Required
LOI Signed within 24 Hours of being completed and returned to us
Simple Delivery of MT760 direct to your Bank.
Up to 1.5% Commission Paid to Brokers
All Leased Bank Guarantee (BG) are Fresh Cut specifically for each Client
2% Non-Performance Penalty in All agreements
Your Deposit is 100% Capital Protected and Repaid in Full to you BEFORE we Deliver the Leased Bank Guarantee (BG) if you enroll in our Deposit Refund Protection Program.
Leased Bank Guarantee (BG) Deposit Requirements:
10M SBLC — €250,000
20M SBLC — €280,000
30M SBLC — €300,000
50M SBLC — €320,000
70M SBLC — €350,000
100M SBLC — €400,000
150M SBLC — €450,000
200M SBLC — €500,000
300M SBLC — €600,000
400M SBLC — €650,000
500M SBLC — €800,000
Estimated Completion Time:
The SWIFT MT760 is Delivered 2 to 3 Days after the Issuing and Receiving Banks exchange MT799s.
Brokers & Consultants:
*Always 100% Protected & Respected
*Healthy Commissions Paid
*Be Direct to the Finance Source, NOT in a Broker Chain!
*We offer 3 Profitable Broker Levels
*Register here as a Broker now!
*Closing Process — SWIFT
Within 3 (banking) days of all Parties signing the Leased Bank Guarantee (BG) Agreement the PURCHASER will pay the 1st Deposit Payment to the PROVIDER.
After the PROVIDER is in receipt the PURCHASERS 1st Deposit Payment. The PROVIDER will authorize a fresh cut BG / SBLC MT760 Instrument to be assigned in the PURCHASERS name at the PROVIDERS Bank and have the instrument placed on Euroclear. The PROVIDER will then present to the PURCHASER a package of 14 Pages of Euro-clear documents as evidence the BG / SBLC is lodged on Euro-clear in the PURCHASERS name.
Within 3 (banking) days of the PURCHASER successfully verifying and authenticating that the PURCHASERS BG / SBLC is lodged on Euro-clear the PURCHASER will complete the payment of will pay the 2nd Deposit Payment to the PROVIDER.
After the PROVIDER is in receipt the PURCHASERS 2ndDeposit Payment. The PROVIDER will authorize the PROVIDERS bank to issue and send a Preadvice Notification via swift MT799 to PURCHASERS designated bank receiving account. PROVIDER shall provide a copy of the issued MT799 to the PURCHASER by email.
Within 3 (banking) days of the PURCHASER successfully verifying and authenticating the PROVIDERS BG / SBLC swift MT799, the PURCHASER will complete the payment of of will pay the 3rd Deposit Payment to the PROVIDER.
When the PROVIDER is in receipt the PURCHASERS 3rdDeposit Payment and the PURCHASERS bank has replied to the PROVIDERS Bank MT799 with SWIFT MT799 that is received by the PROVIDERS bank and is verifiable on the Brussels system at Swift.com, then the PROVIDERS issuing bank will schedule issuing and sending the BG / SBLC via swift MT760 to PURCHASERS designated bank receiving account. Provider shall provide a copy of the MT760 to the PURCHASER by email.
The PURCHASERS bank verifies and authenticates the MT760, and pays for the BG / SBLC within Ten (10) banking days, and pays the 2% consultancy fees/commissions as per the Irrevocable Fee Protection Agreement in this agreement.
Providers bank, within three (3) banking days of receipt of full Invoice payment for the Bank Guarantee, sends the hard copy original BG to the Beneficiaries Bank by bank-bonded courier.
Example:
The Bank Guarantee (BG) is issued with a Value of: €100,000,000,000
The Bank Guarantee (BG) Cost to Client is (8%+2%) 10% LTV being: €10,000,000,000
Within 10 Days After Bank Guarantee (BG) Delivery by MT760 the Clients Bank Pays 10% being €10,000,000,000 to the Issuing Bank
Important: Our contracts also include the purchaser returning the Leased Bank Guarantee (BG) to the Issuing bank 15 days prior to the Leased Bank Guarantee (BG) expiration. This is a critical requirement of all Leased Bank Guarantee (BG).
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Top 6 Reasons Why BECTIC FINANCE COMPANY LIMITED Fund is #1
Company Founded in 1988–11–11
Banking Insiders NOT Brokers
Your Privacy is our Priority.
Our Integrity is Non Negotiable!
We are the Provider for up to 85% of Deals we Process
We Operate our own Private Placement Program & Account
Documents Required:
Download the Buy Leased Bank Guarantee (BG) Application Below
Complete all pages of the Buy Leased Bank Guarantee (BG) Application and email it to: info@becticfinance.com
Critical Compliance Criteria:
Accepted Criteria: Clients that comply with our required Client Standards and accurately and correctly complete the Buy Leased Bank Guarantee (BG) Application.
Rejected Criteria:
Any Bank Guarantee (BG) that is required to be delivered to a Provider on this Banned Providers List.
Any Bank Guarantee (BG) application where the client cannot or does not want to pay the required Deposit.
Critical Information:
Our Purchased Leased Bank Guarantee (BG) delivery service is Non Negotiable. We do not change the terms, structure, delivery procedures or prices of this service.
We do not offer FREE Leased Bank Guarantees (BG) or allow clients to pay for the Bank Guarantee (BG) after the MT760 has been received. If the Bank is not paid to send the Bank Guarantee (BG), then no Bank Guarantee (BG) will ever be sent or delivered. Banks simply do not work for free or on the hope that after they deliver a Bank Guarantee (BG) by MT760 that the client may pay them. For more information on this, please read here.
Client Standards:
BECTIC FINANCE COMPANY LIMITED requires clients meet key standards and pass compliance in order for us to consider working with them. We do not accept all clients because doing business with Secure BECTIC FINANCE COMPANY LIMITED is a unique Privilege given solely to real, genuine, authentic clients, not a Right that is attainable by all. View our required Client Standards here.
Summary:
We solely deal with real deals, real people and real Leased Bank Guarantee (BG) that need to be delivered to our clients nominated bank accounts. The Bank SWIFT Network is the Gold Standard that validates all aspects of this transaction and provides a respected industry platform where a safe settlement can be facilitated. Close your successful transaction with BECTIC FINANCE COMPANY LIMITED.
With decades of Finance and Banking Industry Experience the BECTIC FINANCE COMPANY LIMITED Executive Team understands the Banking Industry from the Inside, because members of our Executive worked in the Financial Instruments Department of a World Top 25 Bank. We can Achieve Results others can’t because we understand from the Inside, what it takes to close a deal from the Outside!
Purchase Leased Bank Guarantee (BG) Application and Agreement.
BECTIC FINANCE COMPANY LIMITED
website : becticfinance.com
Email : info@becticfinance.com
Blog: https://becticfinancelimited.wordpress.com/
BECTIC FINANCE COMPANY LIMITED. Ranked #1: reliable loan lender or genuine provider, Bank Instruments Providers, Bank Guarantee (BG) Providers, Standby Letter of Credit (SBLC) Provider’s and Bank Instrument (BG/SBLC) Monetizers for trading, project financing or to get a loan from a bank? Then Bectic Finance Company Limited is the answer. Contact us today, our customer service officers are waiting to hear from you. We have solutions for every customer in every industry. We say YES even if your bank says NO.
