Bank Guarantee
Apply for
Bank Guarantee
Bank Guarantee in India
In the Indian traditional working capital format, CC and OD are the most famous and commonly known working capital facilities. However, over the period, the banking industry has developed many products. They have designed considering the characteristics of the nature of the businesses. Few of them are developed to build trust between buyer and seller. Generally, working capital facilities can bifurcate into two segments. One is fund-based and another one is non-fund-based. Bank Guarantee is a non-fund-based credit facility. The bank arranges it for the borrower.
FAQs
Advantages of Bank Guarantee
- Builds the confidence of performance in the transaction.
- Issuing bank takes the assurance of the payment.
- Safeguards the interest of both issuing and receiving parties.
- Ease of doing the large value transaction.
- Supports the oral commitment and integrity of the issuing party.
Process of BG Backed Transaction:
Whenever the buyer and seller need assurance on the payment and delivery of the product or service the bank guarantees come into the picture. Below is the standard process followed for the BG-backed transaction.
Why Financiio Venture?
When it comes to the bank guarantee, there are multiple banks that provide BG issuance and discounting facilities. The buyer or seller may confuse as to which one to opt for. We at Financiio Venture, understand the role of the bank guarantee in India from both sides, from the buyer side and from the seller side. It is not only limited to the issuance of the bank guarantee but to the discounting of the bank guarantee as well. We make sure that our professional execution shall help all the parties (Bank, buyer, and seller) to complete the transaction without any hassle.
Financial instruments we arrange
Trade Finance Services
Bridge the gap between you and your export business working capital
Read More
