different types of bgs and its advantages n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Think Before you Opt for BGs or Bank Guarantees PowerPoint Presentation
Download Presentation
Think Before you Opt for BGs or Bank Guarantees

Loading in 2 Seconds...

play fullscreen
1 / 13

Think Before you Opt for BGs or Bank Guarantees - PowerPoint PPT Presentation


  • 4 Views
  • Uploaded on

Before you opt for Bank Guarantees, you must know what is a “bank guarantee” (BG)?. Bank Guarantees are basically a kind of surety provided by any of the banks.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Think Before you Opt for BGs or Bank Guarantees' - hansongroup


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
there are a few times when businesses need

There are a few times when businesses need to guarantee their payments and when things like these come up, the best available option is a bank guarantee.

  • So what is a “bank guarantee” (BG)? Bank Guarantees are basically a kind of surety provided by any of the banks or financial institutions, where they guarantee to pay off the debts or any liabilities of an individual or a business group in case they are unable to do so on their own.
how do bgs work
How do BGs work?
  • When someone uses a bank guarantee, it enables the person or the business organization to invest in a larger scale and can grow their business to a great extent.
before you opt for bgs or bank guarantees you must know how it actually works it works like this
Before you opt for BGs or Bank Guarantees, you must know how it actually works. It works like this—
  • 1. The creditor, which means the bank, and the applicant must ascertain the need of the bank guarantee.
  • 2. Then you as an applicant reach out to the bank or the financial institution and apply for a BG.
  • 3. After that your bank or the financial institution runs a risk assessment and asks for security.
what are the types of bgs
What are the types of BGs?
  • 4. The applicant furnishes the security and the bank, or the financial institution processes the bank guarantee.
  • 5. The bank guarantee is sent to the creditor’s bank or the creditor, or the applicant may be asked to collect it in person to give it to their creditor.
there are two types of bgs they are
There are two types of BGs. They are –
  • 1. The first one is Direct Bank guarantee which is issued by the bank of to the account holder directly in favor of the beneficiary.
  • 2. The second one is Indirect Bank Guarantee which is basically issued by another bank in lieu of a counter-guarantee.
however financial institutions like the hanson

However, financial institutions like “The Hanson Group of Companies” can provided you some other types of Bank Guarantees like – Performance Guarantee, Advance payments guarantee, Payment Guarantee, Conditional Payment Undertaking, Guarantee Securing Credit line, Order and Counter Guarantee etc.

1 a bg allows the applicant to defer the payments

1. A BG allows the applicant to defer the payments for goods and services based on the security provided by the bank.

  • 2. The best thing is, the money isn’t necessarily tied up in just one project; it can be spread around.
  • 3. The cash is always available to explore and expand business.
bgs are really beneficial

BGs are really beneficial for you and you can get a lot of advantages out of it. All you need to do is approach your bank for further info.