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Bank Guarantee (BG)

The lease or purchase of a Bank Guarantee (BG) is not financing, like a bank loan.
What these instruments do is the "buyer" is trying to achieve the guarantee of his performance on a project, so the buyer of services has a guarantee that if the "buyer" of the BG does not complete his performance, for instance, like finishing a construction job, the beneficiary of the BG gets made "whole" by the bank issuing the BG.
For a company or individual to purchase or lease a Bank Guarantee (BG) that have to have the proof of funds in order to complete the contract. 
For instance, a common purchase BG is "40% + 2%", or lease is "6% + 2%"
What this means is the buyer is putting down 40% of the face amount of the performance bond, also known as a bank guarantee, and is also paying 2% of the face amount of the BG as commissions. 
When a company leases a BG, they have no ownership rights but they get to use the BG the same way while they are leasing; in the case of the above mentioned lease BG of 6 + 2, the buyer would only have to come up with 8% of the face amount of the note, creating great leverage for him/her.
Please let us know if you have any additional questions; these instruments are perfect for your client’s construction project, and there is an excellent chance that they are already using them, so they might as well obtain them from DCS. 

Your client can select from any of the instruments that are suitable for their business needs and we will email them the DOA's. 








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INSTRUMENT (1):              BANK GUARANTEE/SBLC, CASH BACKED
TYPE:                                 OPERATIVE, IRREVOCABLE, ASSIGNABLE AND CONFIRMED
TERM:                                ONE YEAR AND ONE DAY
ISSUING BANK:                 HSBC, DEUTSCHE, BARCLAYS, CREDIT SUISSE OR OTHER S&P RATED AAA WEB
CONTRACT AMOUNT:      EURO 5 - 50 Billion, WITH ROLLS AND EXTENTIONS OR LESS.

FIRST TRANCHE:              EURO 100 - 500 Million
SECOND TRANCHE:         AGREEED BY BOTH PARTIES (REFER TO PROPOSED TRANCHE SCHEDULE)
CURRENCY:                       EUROS
FUNDING RATE:                6% + 2% COMMISSION
PAYMENT:                          ICBPO - MT799 FOLLOWED BY UNCONDITIONAL MT-103/Wire Transfer
DELIVERY CODE:              SWIFT MT760 & ORIGINAL HARD COPY BY BANK BONDED COURIER.

(Rate varies w/o notice)(Submit request for Transaction procedures)