BANK GUARANTEE

We, Rayad Insure Danismanlik Ltd Sti, the Bank Guarantee Providers in Turkey can assist you by providing Bank Guarantees – BG MT760 from European Banks at ZERO collateral. To obtain BG MT760 from rated banks, please follow the simple process given below:

1. Initially, the client will submit the details of their trade to us; in terms of – signed proforma or sales and purchase agreement of their trade deal or project.
2. Rayad Insure Danismanlik Ltd Sti will review the deal between buyer and seller. Then, we will update the client about our approval or rejection of their BG request.
3. If the request is approved, the client needs to sign a service agreement with us. And then, they need to pay the admin charges. So, we can start working on their request to issue BG MT760 without blocking their cash funds.
4. Once they signed the agreement and pay the admin charges, we will block our bank limit to structure their BG; and send the BG draft to the client for their review. Also, we will ask the client to provide further documents and pay the BG issuance fees.
5. Once we receive the draft approval, the documents, and the issuance fees, we will instruct our bank to issue the BG from our bank account via SWIFT MT760 to the counterparty’s bank account. Also, this entire process will be done within 48 working hours.

Also called Bank Guarantee or BG MT760, it’s issued by a bank on behalf of its client upon their request. If a client wants to enter into a new project or trade deal, then they require a guarantee to assure their commitment towards their counterparties.

In this case, the client contacts their bank to avail BG MT760. The issued BG acts as a promise to assure the the counter party, that in case of buyer’s default, the bank will meet all financial obligations as stated in the contract.

As BG gives required assurance, most of the trade dealings happen with the use of Bank guarantees. Further, this BG MT760 helps traders to do business & execute trade deals with big companies which couldn’t be possible without the use of a letter of Guarantee. All these make Bank Guarantee, the popular financial instrument in today’s trade market.

To issue an MT760, your bank will demand you to block a 100% cash margin or a third party assurance. If you don’t have enough cash funds to block as collateral, then your BG request will be declined. We are well aware of the crisis faced by traders and contractors in availing MT760. That’s why we support them by extending our bank facilities on their behalf and provide the required MT760 guarantees without blocking their cash funds.

In BG, three types of parties are involved:

• Issuing Bank: The one who takes the obligation for payments, in the case of a default by the contractor or buyer.
• The Applicant: The buyer of goods/services or a contractor hired to fulfill a contract.
• Beneficiary: The seller of goods/services or a company that needs a contractor.

• Improve the credit ratings for issuers of industrial growth, revenue bonds, and commercial papers.
• Provide backup facilities for loans granted by third parties.
• Assure performance under construction and employment contracts.
• With BG, you can spread your working capital around, rather than tying up in a single project or trade deal.

Since banks take the commitment on behalf of the clients, the applicant needs to prove their creditworthiness to their banks to avail BG. Banks will also do a proper background check of the applicant and make an account of credit history, liquidity, past transactions and so on.

Even if the applicant complies with all these terms, they will demand a certain percentage of the guarantee value as cash margin, assets surety, or third party assurance. The bank will start working on your BG request, only if the client obliges to all the terms and conditions of the bank.

If you are a buyer or contractor who requires Bank Guarantee & if you don’t want to tie up your working capital in a single deal, then you can contact us. To apply BG MT760 n your behalf, without any cash margin, fill out the form provided.