Starting the Process
Before starting the process to receive a Bank Guarantee/SBLC, we encourage all our potential clients to ensure that they understand the process and requirements which we have explained herein. Once you are ready, we would ask you to complete and return a Customer Information Profile (CIP form). When we have received your CIP form, one of our Relationship Managers will be pleased to contact you and direct you through the entire process.
Firstly, in order to progress a facility, we will need to receive the completed Customer Information Profile (or CIP form).
- Once we receive your information it will be immediately acknowledged. As we are required by law to undertake due diligence and identification verification. After a successful verification exercise, our compliance department will carry forward your application to offer our finance department the initial acceptance of the application.
- After initial acceptance, We would further discuss the possible terms, conditions and offering including pricing, cost and the maximum amount of the Guarantee available to the applicant (subject to contract).
- If these indicative terms are acceptable, we then begin to acquire the formal and detailed terms which are then presented in Letter of Intent to the applicant. The Letter of Intent is an offering which details all elements of the Guarantee including the amount, terms, the issuing bank, pricing, costs, terms and automated transactional procedures.
Note: The LOI doesn’t constitute an offer. The LOI outlines the terms of a deal and serves as an “agreement to agree” between two parties and not a binding agreement. All the possible terms would be outline on the LOI for applicant review and authorization for Global Finance capital Limited, Hong Kong to send Deed of Agreement which would be binding agreement between both parties
- If the Terms provided are acceptable, the applicant formally accepts the Terms by signing and returning the Letter of Intent within the period of validity (usually 3 working days). The applicant is under no obligation to accept the Letter of Intent. Upon accepting the Terms, the Booking Fee should be paid to Global Finance capital for procurement of the Guarantee.
- Once the Letter of Intent is received, Global Finance capital will issue an approved Automated Transactional Timeline, which will outline the dates for completion of the transaction and shall be considered part of the contract binding between both parties. The Applicant will Review, Sign, Stamp and Return the Automated Transitional Timeline as an authorization for concurrent approval of the stated transactional dates.
- Once the concurrent approved Automated Transactional Timeline is received, Global Finance capital will issue the binding Deed of agreement (DOA). The Deed of Agreement will governs the transaction throughout the term of the Guarantee and it is binding on both parties.
- After successful execution of the contract, the applicant will send the bank transmission and administration fee (SWIFT Charges) for pre-advice via MT799 and BG via MT760 for the transmission of the BG/SBLC as agreed in the Deed of agreement (DOA).
- After receipt the payment of the SWIFT charges for the transmission of pre-advice via MT799 and BG via MT760. Our Issuing Bank will initiate a SWIFT Pre-advice via MT799 to the recipient bank (the bank receiving the Bank Guarantee/SBLC) 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 transmission of the Bank Guarantee via MT760 to the Beneficiaries account.
- The Beneficiary will be expected to clear any encumbrances over the Guarantee within 3 working days prior to its expiry.
- It is recommended that a period of between 5 to 7 working days is allowed for completion of the above transactional procedures. It is possible to achieve faster completion times with the full co-operation of all parties, however an absolute minimum of 5 days 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