A bank guarantee (BG) issued by a bank is an undertaking by the bank to safeguard the beneficiary from losses due to the failure of the bank’s customer to meet a contractual obligation between the customer and the beneficiary of the guarantee. Usually, it is valid for 1 year or longer, and contains specific terms and conditions that require diligent review and understanding.
A standby letter of credit (SBLC) is usually used in lieu of bank guarantee for cross border arrangement to secure payment in the event of non-performance of contractual obligation or extension of credit facility.
Next Steps :
Benefits
Improved cash flow
Why OCBC Bank?
With the credit strength and reputation of OCBC Bank behind your BG/SBLC, your business relationship with the beneficiary will certainly be enhanced.
In addition to the traditional hardcopy application form, you may opt for the softcopy application form or even apply electronically via Velocity@ocbc, OCBC Bank's cutting edge secured internet banking application.
Our vast correspondent banking network also facilitates the arrangement for local guarantee to be issued in various foreign countries to meet your overseas venture requirements.
Your BG/SBLC application will be processed within the same day if your application is received by our Business Banking Service Desk before 4:00pm from Monday to Friday*, thus allowing you to be in command of your business.
OCBC Bank offers a range of BG facilities which includes Bid/Tender Bond, Performance Bond, Custom Bond, Shipping Guarantee, Financial Guarantee etc to meet your business requirements.
