BG
Bank Guarantee - BG’s |
A BG is a Bank Guarantee. It has nothing to do with the classical documentary Letter of Credit, which is used for global trading purposes.
![]() Bank Guarantee A BG is the European form of the well known Stand by letter of Credit (SBLC). The Swift code for a BG is MT760. BG’s (and SBLC’s) can be used to enhance your skill to apply for a line of credit with your bank; in other words, it can be used as collateral when your bank is asking for bonus comfort when you question them to fund your project. We can help you buy a Bank Guarantee BG.The BG’s we deal in are genuinely 100% cash-backed and therefore usable as collateral. Our issuers only use top 25 World Banks – primarily from Europe like HSBC, Deutsche, UBS etc. This guarantees world wide acceptance of your BG. These BG’s are generated by “someone” blocking their funds on your behalf, so we speak of a “leased” BG. In other words the BG is owned by the issuer and you are the beneficiary. The BG is generally issued for 1year and 1 day, but can straightforwardly be extended up to 5 years. (It is doable to get a BG for only 6 months). Once issued the BG is transferred to your bank via the Swift protocol of MT760. Of course, Leasing of a BG comes at a cost. And to be very honest: at a high cost. Financing your project by using a BG is very expensive. First you need to pay money to the issuer of the BG plus commission to the consultants facilitating the administer, Then you need to give the BG to your bank, who are providing a Line of Credit against the BG, which may only be up to 90% LTV or less. And usually, your bank will charge a one off fee to ‘monetise’ the instrument and also charge appeal on the drawn down loan amount. To fruitfully apply for a BG – Bank Guarantee you need to be aware of four vital points:a) You need to have a excellent project in mind to obtain your Bank Guarantee All the BG’s we deal with are callable, assignable, fully manageable and lienable. If you are thought of using a BG to participate in a High Yield Trade Program, we are more than pleased to help you in acquiring the BG and introduction it into trade. But, you need to be very sure you are able to pay the leasing fees of the BG before issue, as most providers will not allow the instrument to be taken into a Trade Program unless and until the fee is paid. You cannot pay the lease fee from the program returns . It is also not doable to use a BG to secure a commodity trade and pay for the BG out of the profits from the transaction. |


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