Maybank - Enterprise - Trade Finance Business

Home

Maybank2u.com

Sitemap

About Us

News

Services

	Payroll
	Payment
	^eDividend
	Collection

Enquiry Forms


	First Time Enquiry
	Additional Services

Demo

FAQ

Other Enterprise Products

Related Links



Bank Guarantee (BG)
A Bank Guarantee is an unconditional written undertaking issued by the bank on behalf of the customer (applicant) favouring a third party (beneficiary) to pay beneficiary upon his claim a sum of money in the event of non-performance of obligation by the customer.

Salient features of BG
•	Bank Guarantee is issued at the request of customers. Customers may request to use bank's format or other format required by the beneficiary, subject to approval by the bank
•	Bank Guarantee is divided into 2 major categories :
	a)	Financial Guarantee A guarantee by the bank to pay upon demand to the beneficiary in the event the bank's customer fails to fulfill his obligation to pay the beneficiary. In short, this guarantee is issued to ensure fulfillment of financial obligation by applicant
	b)	Performance and Tender Bond A guarantee by the bank to pay upon demand to the beneficiary in the event of non-performance of contractual obligation by the bank's customer. This guarantee is issued to ensure performance of an act agreed between customer and the beneficiary
•	Common types of BG
	-	Tender Guarantee or Bid Bond
	-	Performance Guarantee
	-	Advance Payment Guarantee
	-	Warranty Maintenance Guarantee
	-	Retention Guarantee
•	Bank Guarantee can be issued to a local party as well as a foreign party
•	Bank Guarantee contains a specific validity period of coverage and a claim period
•	Bank Guarantee facility is available for customers with trade facility or on ad hoc basis (with certain limit prescribed)
•	Further enquiries can be made at any of our Trade Finance Centres or Business Centre nationwide



Why would customers want BG ?
•	To bid for tenders
•	Requirement as per contract engaged between the customer (applicant) and third party (beneficiary) i.e. government departments, statutory bodies, commercial firms and etc
•	To fulfill his obligations under a contract
•	To guarantee his payment obligation


Benefits of BG to customer
•	Reflects the customer's / applicant's capability to perform his obligation
•	Able to obtain favorable trade terms from the beneficiary if the applicant produces a BG
•	There is no necessity to raise cash to meet the deposit requirements and funds could be used to support working capital requirements
•	Allows customers to have access to funds especially where BG is issued for advance payment or release of retention funds under contracts


back

Home I Terms & Conditions I Security, Privacy & Client Charter