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Вигоди для бізнесу та прибутковість для ВАС

Наша місія полягає в тому, щоб запропонувати покращені інструменти фінансування для бізнесу та відмінну прибутковість для постачальників у довгостроковій перспективі.

Усі наші послуги відображають сильну культуру партнерства, персоналізований підхід, прагнення до виняткової продуктивності та безкомпромісне створення цінності.

Raising Lines of Credit. Bank Guarantees.

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Raising Lines of Credit

Raising Lines of Credit. Bank Guarantees.

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Direct short-term projects and import-export finance

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Raising Lines of Credit. Bank Guarantees.

Liquefaction of non-performing assets

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Raising Lines of Credit. Bank Guarantees.

Reverse factoring

Reverse factoring or supply chain financing is a supplier-payment management service whereby the bank may offer to pay invoices before they are due.

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Please complete preapplication form

The purpose of this service is to pay invoices before their due date or to offer to finance. It is often used by companies needing to manage a wide range of suppliers, wishing to defer payments, or which have complex payment systems.

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With reverse factoring, the bank guarantees the customer’s payments to its suppliers, similar to paying with certified funds. The bank, therefore, opens a reverse factoring line of credit up to a specific credit limit and handles supplier payments. The fees and expenses charged, together with interest on the capital used to pay the suppliers, are defined in the credit facility agreement.

The bank writes to suppliers to inform them that the invoiced amount is available and offers the option of collecting payment at maturity or in advance, under the conditions agreed by the paying company and the bank. The bank may charge the supplier a prepayment fee as well as interest from the date of the advance until the invoice due date.

Банківські гарантії Європейських Банків

Більшість наших клієнтів обирають прямі гарантії для міжнародних та транскордонних транзакцій, які легше адаптувати до іноземних правових систем та практик, оскільки вони не мають вимог щодо форми.

Однак непрямі гарантії часто мають своє місце в експортному бізнесі, особливо коли бенефіціарами гарантії є державні установи або державні структури. Багато країн не приймають іноземні банки та гарантів через юридичні проблеми або інші вимоги до форми. У випадку непрямої гарантії використовується другий банк, зазвичай іноземний банк з кореспондентом у країні проживання бенефіціара.

Найпоширеніші види гарантій

Банківська гарантія, як широко вживане визначення, буває різних видів:

- Гарантія оплати гарантує продавцю, що ціна покупки буде сплачена у встановлену дату.

- Гарантія авансового платежу виступає забезпеченням повернення авансового платежу покупцем, якщо продавець не поставить зазначений товар згідно з договором.

- Кредитна облігація служить забезпеченням для погашення кредиту.

- Гарантія оренди служить забезпеченням платежів за договором оренди.

- Підтверджене платіжне доручення – це безвідкличне зобов'язання, згідно з яким банк виплачує бенефіціару встановлену суму у певну дату від імені клієнта.

 -Гарантія виконання зобов'язань служить забезпеченням витрат покупця, понесених у разі, якщо послуги або товари не будуть надані відповідно до узгодженого в договорі.

- Гарантійний документ слугує забезпеченням, що гарантує доставку замовлених товарів згідно з домовленістю

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Raising Lines of Credit. Bank Guarantees.

Short-term ZFR bank instruments

Just like people, businesses and financial institutions prefer developing relationships with individuals or organizations they trust. Therefore, when determining whom to trust, these institutions prefer to put their faith in the recommendations of other, similar businesses or institutions or get verifiable confirmation of counterparty status. That’s the case where short-term ZFR bank instruments may be indispensable. Acronym ZFR stands for Zero Financial Risk and is used to emphasize that no funds are set aside at the customer’s disposal so there’s no chance for abuse and so the lowest possible fees are used. Combining with short validity terms such instruments are most affordable for any business. For the sake of authenticity, the instruments are typically transmitted on the bank-to-bank basis i.e. SWIFT system, commonly in MT799 or MT999 formats but instead of other instruments, there are no strict set of rules (like UCP in Letters of Credit).

Bank good standing/comfort letter

Letter of good standing is a document issued by the bank upon customer’s request, used to express the bank’s intent/availability to support and develop the customer’s internal and international business relationships, under certain conditions. It typically serves as a type of formal introduction and a vouch for your financial situation. Note that some bond companies would need an account satisfactory letter from a bank before agreeing to do business with prospective clients, as do financial institutions in other countries.

Also referred to as a bank reference letter, these documents contain information about your history and relationship with your bank. These letters speak of your financial responsibility and stability and demonstrate your ability to maintain a healthy, working relationship with a financial institution.

These letters also validate your identity, testifying that you come to an institution with a legitimate business. A Swiss bank, for example, may ask for a letter of good standing, as may companies dealing in offshore accounts or business. These letters apply to companies as well as individuals.

Note that the process of obtaining a letter of good standing from a bank depends upon the institution providing the letter. Some institutions would want to maintain an official process or a form you must file, while others require you only to contact the institution and request such a form.

Proof of funds

Proof of funds (POF) refers to a document or documents that demonstrate a person or entity has the ability and funds available for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate.

Proof of Funds (POF) for Business/Personal Immigration

A Proof of Funds letter can be required for immigration into a country. For example, the Government of Canada requires that Canadian Visa applicants show they have enough money to support themselves and their families if they wish to enter under a specific immigration program. Most business visa immigration programs require the same for the legal entities.

The money cannot be borrowed from another person or business and the money must be able to be drawn for living expenses.

Raising Lines of Credit. Bank Guarantees.

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Letters of credit

A letter of credit or documentary credit is a payment mechanism used in international transactions to give added security to both the exporter and the importer.

Everything looks familiar?

Documentary credit is used to ensure that exporters are paid for the goods they sell and that importers pay for the goods they receive, provided certain conditions are met.

The exporter collects payment for his goods, as agreed with the importer, who has arranged for his bank to make payment upon presentation of the required documentation. The importer will pay for the goods once it is accredited that the conditions agreed with the exporter have been met. And the exporter will have arranged with his bank to collect payment on presentation of the documentation accrediting that the goods have been shipped according to the agreed conditions.

The importer will first ask his bank to issue a letter of credit, and then notify the exporter and inform him what documents have to be presented. The exporter then sends the goods to the agreed location under the agreed conditions, and simultaneously instructs his bank to send the documents that prove the goods have been shipped according to the agreed terms to the importer’s bank. Finally, once the correct documents have been received, the importer’s bank will make the payment.

Revocable or irrevocable: once issued a revocable letter of credit can be modified or cancelled prior to payment by the importer’s giving the relevant instructions to his bank, making it less secure for the beneficiary. An irrevocable letter of credit, on the other hand, cannot be cancelled or modified by the issuer, such that the beneficiary is guaranteed payment provided the necessary documents are presented.

The documentation when making or collecting payment, in the case of the importer and exporter, respectively, is crucial. This documentation must be accurate and be as specified in the letter of credit. It is usually the beneficiary that prepares the necessary documentation, according to the terms of the agreement. The beneficiary can be sure of collecting the payment if he submits the necessary documents in the appropriate form on time.

The importer can make sure that the shipped and invoiced goods are as ordered, by either going directly to the off-loading point and checking the goods in person or by hiring an independent third party to carry out the inspection; this third party may be a trusted individual or a specialist certification agency. Therefore, one of the documents usually required is the physical inspection certificate for the goods, which must be verified either by the importer or by a third party. 

Confirmed or unconfirmed: irrevocable letters of credit can also be confirmed or directly guaranteed, either by the issuing credit institution itself or by a third-party, usually from the beneficiary’s country as this offers the beneficiary greater solvency or reliability. Unconfirmed letters of credit do not have these additional guarantees, however.

Sight or deferred letter of credit: a letter of credit at sight is paid as soon as the required documents are presented. In the case of a deferred or time letter of credit a delay is allowed after the necessary documents have been presented before payment is made.

Transferable or non-transferable: a transferable letter of credit allows the beneficiary to instruct the paying bank to pay some or all of the sum of money to another individual, who must be identified beforehand. Letters of credit must expressly indicate whether they are transferable or non-transferable.

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Raising Lines of Credit. Bank Guarantees.

Preapplication enquiry form

Please complete this form as introductory registration and a description of your request. No data you provide will be available to any third party. You can also download and complete the form offline. Click here to download PDF.

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Raising Lines of Credit. Bank Guarantees.

Frequently asked questions

Here you can read frequently asked questions for guidance or submit a question of your own. The questions are grouped by topics.

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Procedures & timescales

Costs & pricing

Technical questions about Bank Guarantees

Obtaining credit lines against bank guarantees

Questions from clients

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Raising Lines of Credit. Bank Guarantees.

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Common procedures for assets lending and issuing of guarantees

Although the procedures vary slightly from one case to the next, they are generally similar. Here are the procedures outlined in detail to give our potential clients all the information. More formal Terms and

Next…

Once we receive your information it will be immediately acknowledged. As we are required by law to undertake due diligence and identification verification, our compliance team will carry forward your application to offer our experts the initial acceptance of the application.

After initial approval, our experts will seek a suitable asset holder (provider) willing to offer the facility to the applicant (subject to contract) and obtain their best indicative terms. Indicative terms are an outline of what may be achieved and provide the applicant with the basic illustration and an offering in principal including pricing and the maximum amount of the bank guarantee available to the applicant.

Or if you still have any questions please

If these indicative terms are acceptable, we then begin to acquire the formal and detailed terms which are then presented in Terms Agreement to the applicant. The Terms Agreement is a formal offering which details all elements of the bank guarantee including the amount, term, the provider, the issuing bank, the recipient bank, pricing, costs, terms and procedures and of course a draft wording of the guarantee itself. The Terms Agreement is a binding offer to provide the facility.

If the Terms provided are acceptable, the applicant formally accepts the Terms by signing and returning the Terms Agreement within the period of validity (usually 14 days). The applicant is under no obligation to accept the formal Terms Agreement. Upon accepting the Terms, the Booking Fee should be paid to us. Once executed the Terms Agreement is a binding agreement between the parties.

If necessary and if requested by the asset holder, the Beneficiary will be required at this stage to make the refundable Security Deposit payable directly to the provider as will be noted within the Terms Agreement.

Once any required deposit has been lodged, the provider will instruct the issuing bank to contact the beneficiaries bank. Typically, at this stage, the issuing bank will issue SWIFT advice to the recipient bank (the bank receiving the guarantee) confirming and verifying the pending transaction.

The beneficiary will be expected to instruct his receiving bank to respond to the SWIFT advice offering their agreement to receive the guarantee and to provide any other account verifications required, prior to the issue of the bank guarantee (MT760) to the beneficiary’s account.

At this point, the beneficiary will need to show proof that they have the ability to settle any outstanding contract fees due. If we are assisting the beneficiary with credit facilities, the lender can step in to show the provider such proof and can settle the balance of the contract fees direct from the loan. However, if the beneficiary is not using our team to raise credit facilities, they will need to demonstrate their ability to pay. At the end of the contracted term, the beneficiary will be expected to clear any encumbrances over the guarantee 5 days prior to its expiry. 

It is recommended that a period of between 8 to 12 weeks is allowed for the completion of the above transactional procedures. It is possible to achieve faster completion times with the full cooperation of all parties; however, an absolute minimum of 3 weeks should be allowed. We welcome any enquiries or questions. We feel it is necessary for our clients to fully understand all elements of a facility before applying.

No advance fees, hidden or unexpected costs or charges

Neither we nor any of the providers’ levy advance fees or charges. We provide our clients with a full and detailed Terms Agreement fixing the exact binding terms of the contract free of charge and without any obligation on the applicant to proceed. We burden all due diligence and underwriting costs. The Terms Agreement is a formal offering of the facility and details all elements of the transaction including the amount, the term, details of the provider, the issuing bank, the Contract Fee (the annual rental of the Guarantee) and the procedures to completion. It is a formal and binding offer.

All costs, fees and charges are detailed in full and explicitly within the Terms Agreement contract supplied. If at any time after receiving the Terms Agreement you decide you do not wish to proceed, you can do so with no financial commitment, cost or charge. All details, costs, charges and procedures will be declared before you are required to make any financial commitment.

Costs and charges to pay once the facility has been given

If you wish to proceed with the facility once you have received the detailed Terms Agreement offering you the facility, you will be required to make payment of a Booking Fee. You will receive an Offer contract directly from your provider, generally within ten days. Depending on your credit status and trading history, the provider may request that a deposit is paid against the Contract Fee (a Claim Security Deposit). Of course, once your bank has received the issuing banks SWIFT advice of the bank guarantee, you will be expected to make payment of the Contract Fee, less any deposit paid. There are no other costs or charges. All costs, fees and charges are detailed in full within the Terms Agreement.

Booking Fee

The Booking Fee is a fee payable to reserve the collateral and is the consideration for the Terms Agreement. It is the fee for ‘booking’ the transaction.

Contract Fee

The Contract Fee is the annual rental charge for the use of the assets/collateral, chargeable by the provider. The Contract Fee will be detailed within the Terms Agreement and commonly will be about 3.50% to 10% per annum, depending on the applicant, status, institution involved and current market demand.

Claim Security Deposit

In some cases, where the applicant is not a listed company or is a private corporation with low trading history or where the applicant is an individual, a provider may request that a deposit be paid against the Contract Fee. It is a refundable deposit and credited towards the Contract Fee at completion.

Legal fees or bank charges of the Provider

The providers will typically pay all legal fees in the issuance of the collateral and documentation and will pay the bank charges for the issuance of the guarantee. All costs and charges are included within the Contract Fee and will be detailed within the Terms Agreement.

Securing the facility

As soon as you accepted the Terms, the facility is secured in accordance with the terms and conditions of the Terms Agreement. 

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Raising Lines of Credit. Bank Guarantees.

LC Application form

Please complete this form even you have all transaction details settled in Proforma Invoice or the contract. This will speed up the processing and help to avoid misinterpretations.

Explanatory Notes

Advising Bank

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Raising Lines of Credit. Bank Guarantees.

Legal Terms and Conditions of Guarantees

In this document, the term “Guarantee” is equivalent to “Standby Letter of Credit” and is used for both types of guarantees. 

In consideration of Banking Institution issuing or arranging for the issuance of a Guarantee, the Applicant agrees with the Banking Institution as follows:

1. Definitions

The following words and terms will have the meanings set out below:

“Agreement” means the Application Form including these Terms and Conditions of the Guarantee;

“Applicant” means the party requesting the Guarantee;

“Application” means the Application for a Guarantee;

“Bank Guarantee” (also equal to “SBLC”) is a promise from a bank or other financial institution to pay the agreed amount of currency under specified conditions.  

“Beneficiary” means the party in favour of whom or which the Applicant has requested the Banking Institution to issue the Guarantee; and, in the case of a transferable Credit, each transferee designated by the Beneficiary. Beneficiary means the party in favour of whom or which the Guarantee has been issued;

“Beneficiary Bank” means the bank designated by the Beneficiary to receive the Guarantee;

“Credit” means the Guarantee issued by the Banking Institution pursuant to the Application; and, to the extent that the Credit is transferable, each credit issued in transfer thereof;

“Drawing” means any demand or request for payment under the Credit, in accordance with the provisions of the Credit;

“Banking Institution” means a financial institution that issues the Guarantee;

“Indemnity” means the indemnity given by the Applicant(s) to the Banking Institution as a condition of the Application, the terms of which are contained in this Agreement;

2. Authorization to Pay and Release of Original Hard Copy

2.1. The Banking Institution is irrevocably authorized and directed to pay any Drawing requested by a Beneficiary up to the maximum amount and in the currency specified in the Credit. The Banking Institution may effect such payment without reference to, confirmation of or verification by the Applicant, it being expressly agreed that any Drawing shall be, as between the Applicant and the Banking Institution, the Banking Institution’s irrevocable and sufficient authority for making payment under the Credit.

2.2. In the case of variance between documents required under the Credit and those presented by a Beneficiary, the Applicant shall be deemed to have ratified and confirmed the Banking Institution’s acceptance of the documents so presented as complying with the Credit and to have waived any right to object to variance from the documents required under the Credit.

2.3. The Applicant is aware of the condition that the Banking Institution will release the original hard copy of the Credit only after receiving the payment of the amount required under the Terms of the Credit set out on page 1 of this Application.

2.4. The Applicant confirms that he has informed the Beneficiary about the circumstance mentioned in the Clause 2.3.

3. Fees and Payments

3.1. The Applicant agrees unconditionally and irrevocably to pay all amounts paid and expenses incurred (including but not limited to Drawings, fees, commission, interest, costs and charges) by the Banking Institution as a result of the issuance of a Guarantee in accordance with this Application.

3.2. The Applicant shall pay the Banking Institution on demand its fees in respect of the Credit or in respect of services in relation to the Credit set out in this Application.

3.3. In consideration for the acceptance of the Application by the Banking Institution, the Applicant will pay a non-refundable fee in the amount set out in this Application.

3.4. If the applicant wants to cancel the application for the issuing of the Credit after the payment of the fees, the fees shall not be reimbursed by the Banking Institution but offset as a down and/or advance payment for the issuing of the following financial instruments.

3.5. The Applicant will prepay or reimburse the Banking Institution on demand, as the Banking Institution may require in its absolute discretion, all amounts paid and expenses (including but not limited to Drawings, fees, commission, interest, costs and charges) incurred or to be incurred by the Banking Institution in connection with the Credit.

3.6. Each prepayment or reimbursement shall be in the currency in which the Banking Institution is to make, has made or may be called upon to make payments under the Credit.

3.7. Overdue amounts: If the Applicant fails to pay to the Banking Institution any amount due and requested in writing within seven days of such request, then the Applicant agrees to pay interest at 3% per month on the overdue amounts.

4.    Indemnity

4.1. The Applicant (and if there is more than one Applicant, then each Applicant jointly and severally) agrees unconditionally and irrevocably to fully indemnify and hold the Banking Institution harmless from all losses, damages, costs, demands, claims, expenses (including but not limited to Drawings, fees, commission, interest, costs and charges) and other consequences which the Banking Institution may incur, sustain or suffer, other than because of its own negligence or willful misconduct, as a result of accepting the Application, arranging, issuing or amending the Credit or enforcing or protecting its rights pursuant to this Agreement (the “Indemnity”).

4.2. The Indemnity includes, without limitation, all legal and other professional expenses incurred by the Banking Institution howsoever incurred, in connection with the Agreement.

4.3. This Clause 4 shall survive the termination of the Agreement.

5. Third-Party Issuance of Credit

5.1. The Banking Institution is authorized to arrange for the issuance of the requested Guarantee by any other institution of its choice (the “Third-Party Issuer”), whether or not a connected company with the BankingInstitution, against the Banking Institution’s Guarantee.

5.2. The Applicant agrees that the Banking Institution shall not be liable for any act or commission of the Third-Party Issuer.

6. Issuance of and Consequences of Non-Acceptance of Credit

6.1. The Banking Institution will ordinarily issue the Credit (or arrange for issuance by a Third-Party Issuer) within 5 banking days of the Applicant paying all fees and fulfilling all Applicant conditions for the issuance of the Credit set out in this Agreement. The Banking Institution has no control over whether or when the Credit will be received by the Beneficiary Bank and makes no representations or guarantees that the Credit will arrive at the Beneficiary Bank by any specific date.

6.2. The Applicant understands and acknowledges that the Banking Institution has no control or influence over the acceptance of the Credit. In the event that the Beneficiary and /or the Beneficiary Bank refuse to accept the Credit, the Banking Institution shall have no liability whatsoever for any financial or other costs incurred by the Applicant including any non-refundable commission or fees paid by the Applicant to the Banking Institution.

6.3. The Applicant understands and acknowledges in the event that the Beneficiary and/or the Beneficiary Bank refused to accept the Credit the obligations of the Banking Institution cannot be considered incomplete for this reason.

7. Source of Funds

The Banking Institution is committed to the prevention of financial crime through money laundering or the financing of terrorism or fraud. The Applicant confirms that all funds paid or to be paid by it to the banking institution are from legal sources and not from any criminal sources or activity or otherwise in contravention of the Policy.

8. Responsibility of Banking Institution

8.1. The Applicant agrees that the transmission of all instructions and/or all correspondence in connection with the Credit shall be at the risk of the Applicant.

8.2. The Banking Institution (including its staff and representatives) are not responsible for (i) any failure by the banking Institution’s agents or correspondents to carry out their instructions; (ii) any loss or delay in transit, in transmission or in the mail of the Credit, or any amendments or communications in connection with the Credit; or (iii) any loss arising out of the interruption of business by acts of God, riots, civil commotions, insurrections, wars, labour disputes, or any other cause beyond the control of the banking institution.

9. No Obligation to Issue Credit

Nothing herein shall oblige the Banking Institution to issue its Guarantee or to arrange for the issuance of a Guarantee by another institution.

10. Joint and Several Liability

If the Application is made by more than one Applicant, then the liability of the Applicants shall be joint and several.

11. Governing Law and Dispute Resolution

This Agreement shall be governed and construed in all respects in accordance with English law. Any dispute arising out of or in connection with the Agreement shall be governed by the exclusive jurisdiction of the Courts of England and Wales and by entering this Agreement the Applicant irrevocably submits to the jurisdiction of the English Court.

12. Whole agreement

This Agreement constitutes the entire agreement between the parties in relation to its subject matter and supersedes all and any previous agreements and understandings, oral or written. Each party acknowledges to each other party that it has not agreed to enter into this Agreement in reliance on any representation, warranty, assurance or commitment not contained in this Agreement.

13. Language

The English language version of this Agreement, the Guarantee and all related or supporting documents completed by the Applicant and the Banking Institution are the final and binding version. Any documents provided by the Banking Institution in any other language than English are for information only and are not legally binding.