Letter of Credit
Letters of Credits (LC) are one of the most common methods used in international trade transactions. LCs are issued by a bank on behalf of its client to his beneficiary in order to guarantee a payment for a particular transaction, as long as certain conditions are met. LCs provide security to both parties (buyer and seller) in the transaction.
Our letter of credit enables clients being middleman to transactions without a required collateral, client money is not tied into to the transition.
Standby Letter of Credit and various Guarantees
A Standby Letter of Credit (SBLC) or any guarantee is commonly used in covering the risk of non-payment by a buyer or non – deliver by beneficiary. They can be used in situations where goods or services are being purchased on credit, or as additional form of protection in conjunction with collections or documentary credits.
SBLCs and Guarantees can be issued in variety of situations, such as to provide security for a loan , to guarantee performance under contract, or to ensure that an obligation is fulfilled.
In general, they are useful tools for mitigating risk in international trade transactions.
Bid Bonds / Performance Bonds
Bid Bond is usually related with the construction bidding process. A bid bond normally covers the bid itself, guaranteeing that the contractor can fulfil its project obligation. Once the contractor or client becomes a winner of tender then the performance bond becomes necessary in order to guarantee the completion of the project, it replaces the bid bond.
If you are a contractor that is losing business for not being able to win tenders due to project owner request and are having a hard time with your bank providing financial support, We can help. Our company can assist with issuance of a bid bond or a performance bond.
If you have a specific project that you need to submit a bid to win tender, contact us for our assistance.
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