GENUINE & LEADING PROVIDERS OF FINANCIAL INSTRUMENT AND LOAN IN HONG KONG.
BECTIC FINANCE COMPANY LIMITED
BECTIC FINANCE COMPANY LIMITED. We provide Lease Bank Guarantee , BG SBLC Providers, Bank Instrument Providers, financial instrument providers, monetizers of bank instruments, international bank guarantee providers, genuine bank instrument providers & sblc providers.
A bank guarantee also known as BG is a legal surety and guarantee issued by bank or financial institutions for different business purposes between a buyer and a seller. The bank guarantee serves as a risk management tool for the beneficiary.
Bank guarantee is given on a contractual obligation between the bank and its customers. Such guarantees are widely used in business and personal transactions to protect the third party from financial losses. This guarantee helps a company to buy goods they can’t, it also helps businesses to grow and also promote entrepreneurial activity.
A) The applicant (the party that requests a bank guarantee from the bank and borrows from a creditor)
B) The beneficiary (the party that receives a partial guarantee)
C) The bank (the party that agrees to sign and assures payment in case the applicant fails to repay the loan)
Types of Bank guarantee.
There are different types of bank guarantee used in businesses.
1. Financial BG : A financial bank guarantee assures that money will be repaid if the party does not complete a particular project or operation entirely. These guarantees are generally issued in exchange for security deposits where a financial commitment is required. instead of depositing the money, the buyer can provide the seller with a financial bank guarantee.
2. Performance BG : In performance guarantee, compensation of money will be made by the bank when there is any delay in delivering the performance or operation.
For example, A enters into a contract with B for completion of a certain project and the contract is supported by a bank guarantee. If A does not complete the project on time and does not compensate B for the loss, B can claim the loss from the bank with the bank guarantee provided.
3. Advance Payment Guarantee : An Advance Payment Guarantee is issued by the bank when the seller is paid with an advance amount.
4. Bid bond guarantee : Under this type of guarantee, there will be a supply bidding procedure. This will be conducted by the contractor for the owner of an infrastructure or industrial project or any kind of operation. The owner is assured that the bidder will undertake the contract as per the mentioned terms & conditions. In case if the bidder defaults, the owner of the project will be compensated by the bank.
5. Deferred Payment Guarantee : This guarantee is issued when there is a payment being paid in installments that are deferred or delayed such as the purchase of goods or machinery, etc. The buyer’s bank undertakes the payment risks for the seller.
6. Foreign bank guarantee : A foreign bank guarantee is provided by a bank on behalf of a borrower. This will be offered on behalf of the foreign beneficiary or creditor.
Bank Guarantee (BG) Eligibility and Process.
At Bectic Finance Company Limited any person who has a good financial record and maintains a good credit score is eligible to apply for BG. Before approving the BG, the bank will analyse the previous banking history, creditworthiness, liquidity, CRISIL, and CIBIL rating of the applicant. Many banks and private financial institutions are offering different types of international trade finance instruments at the best prices.
Documents Required For BG.
When an applicant applies for a bank guarantee, they go through an extensive evaluation process in the hands of a particular bank. Before you can obtain a bank guarantee, there are documents which are required to provide.
1. A BG application form
2. Order copy of the request of BG made by the beneficiary
3. Lien letter
4. Collateral details
5. Associated documents listed with the collateral etc.
Bank Guarantee Charges.
Generally, BG charges are based on the risk assumed by the bank in each transaction. For example, a financial BG is considered to assume more risk than a performance BG. Hence, the fee for financial BG will be higher than the fee charged for performance BG. Based on the type of the BG, fees are generally charged on a quarterly basis on the BG value of 0.75% or 0.50% during the BG validity period.
Apart from this, the bank may also charge the application processing fee, documentation fee, and handling fee. In some cases, security is required by the bank from its applicant, which is generally 100% of the BG value. In certain cases, collateral security or cash margin may also be accepted by the issuing bank.
Advantages Of A Bank Guarantee.
Some reasons which make bank guarantees one of the most important types of trade finance instruments for both importers & exporters.
1. Proof of Creditworthiness : Since a particular transaction in a bank guarantee is backed up with legal support, it reflects their sound financial stability to the suppliers.
2. Reduced Financial Risks : The increased numbers of defaults on the hands of the importer have given birth to the immense demand for a bank guarantee service. Sellers find it complex to deal with an unknown buyer residing overseas they are not familiar with. A bank guarantee addresses this issue by providing payment assurance to the suppliers.
3. Overseas Opportunities : A bank guarantee enables exporters to deal with unknown parties overseas without any stress due to the involvement of the guaranteeing bank. Thus, they can discover more global opportunities for their businesses without any payment threat.
4. Nominal Fees : Another benefit of applying for a bank guarantee is the small fee charged by the banks.
5. Lesser Documentation : There is lesser documentation in the issuance of a BG. It only includes information about the concerned parties, the transaction, and the financials of the applicant demanded by the banks.
Disadvantages of Bank Guarantees.
1. The involvement of a bank in the transaction can bog down the process and add an unnecessary layer of complexity and bureaucracy.
2. When it comes to particularly risky or high-value transactions, the bank itself may require assurance on the part of the applicant in the form of collateral.
Different Between BG & LOC.
LOC : The bank will later recover the amount paid from the buyer along with the required charges.
BG : The bank is required to make payment to the third-party only if the applicant fails to make the payment to the third-party or does not fulfil the required obligations under the contract.
A BG is essentially used to ensure a seller from loss or damage due to the non-performance by the other party in a contract. LOC is generally misunderstood as BG because they share some characteristics. They both play a significant role in trade financing when the parties to the transactions don’t have established the business relationships. However, there are a lot of differences between LOC and BG.
If you are a global businessman and looking for a bank guarantee service provider, keep this information in mind before applying for it. A bank guarantee is an effective type of payment guarantee trade finance instrument being used in international trade.
At Bectic Finance Company Limited we are a reputable Financial Services Provider with decades of quality experience.
Our Loan To Value for leased bank instruments.
At BECTIC FINANCE COMPANY LIMITED, we offer the best rates in the industry. All our BG SBLC are issued from AAA rated banks and we offer 80% LTV.
BECTIC FINANCE COMPANY LIMITED ( ???????? ) was incorporated in Hong Kong on 1988-11-11 as a Government Licensed Money Lender with CR No : 0232762. We are leading providers of Business Loan, SME Loans, Project Financing, Recourse Loan, Non Recourse Loans and Bank Financial Instruments such as Standby Letter of Credit Funding, Bank Guarantee, Performance Guarantee Bond, Tender Bond Guarantee, Advance Payment Guarantee, Bank Comfort Letter, BG/CD/BD/BCL/DLC/LOC/SLOC/SBLC etc.
We provide financial services to various customers all over the world including importers, exporters as well as customers that need credit enhancements or trade finance facilities to execute projects locally or internationally.
Our loan interest rate is 3% yearly and you can get a loan from us with or without security or collateral. The loan term is up to 30 years.
Our bank instruments, bg and sblc/sloc are issued from well known banks in the world such as Standard Chartered Bank, Barclays Bank London HSBC Hong Kong or any rated AAA bank of your choice. All our financial instruments are Cash-Backed and can be used as collateral to secure funding for projects, Discounting, Monetization and Private Placement Programs (PPP).
Why contact Us?
1. Fast Turnaround
2. Best Top Rated Banks
3. Competitive Low rates
4. (a) No prepayment penalty (b) Days for Commitment
5. Extremely Satisfied Clients
6. WE KEEP OUR PROMISE
7. 30 Years of Experience & Trust
8. No Personal Collateral Required
9. Solutions for every customer & every industry.
10. Loan amounts from $1 million to over $500 million
11. Fast Approvals & Fast Funding- Closing in as little as 5 days
NOTE : There are few genuine bank guarantee providers in the world and BECTIC FINANCE COMPANY LIMITED is one of the leading providers of bank financial instruments such as BG, DLC and SBLC.
Intermediaries/Consultants/Brokers are welcome to bring their clients 100% protected. In complete confidence, we will work together for the benefits of all parties involved.
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