Banker¡¯s letter of guarantee (L/G) refers to a written guarantee issued by bank to the beneficiary at the request of the consignor. As the guarantor, bank guarantees the repayment of debt in accordance with the agreement. When the consignor fails to fulfill its obligations specified in the agreement, the beneficiary can make claim to the bank in accordance with the L/G.

Features

For applicants participating in goods trading, international biddings, contracting a project, engaging a compensation trade, or raising fund from abroad, their counterparties may requires L/G issued by bank to ensure they can fulfill the obligations under the contract, or make repayment in time.

Target customers

1. Companies with sound settlement history and credit record with SRCB.

2. Companies  wanr letter of guarantee (L/G) with certain money need to get SRCB's permission to apply.

Application process

1. Customers to apply for credit limit at SRCB, and provide with counter guarantee.

2. Customer to submit application and supporting documents (ie. commercial contract).

3. SRCB to review the application, approve the limit, and sign agreement and contract with the customer.

4. SRCB to issue Letter of Guarantee/Standby L/C.