Bronze Wing Trading Explains Bank Guarantee & Letter of Credit Services

Dubai, March 8, 2013: To secure your next business contract or leasing arrangement, all you need is a bank guarantee. The bank guarantee helps insure the buyer or seller from loss or damage due to nonperformance by the other party in a contract. To obtain bank guarantee, the buyers have to submit their requirement in terms of sales and purchase agreement or pro-forma invoice of their commercial transaction.

Also, certain documents and LC issuance fee charges are a few requirements to get bank guarantee. The bank guarantee will be issued by a bank on behalf of buyer/importer and in favor of their supplier/exporter to conclude their trade deal. The companies can now easily make purchases, acquire goods, equipments, commodities and draw down loans without tying up their working capital. People can also benefit from another option of letter of credit, which is similar in many ways to bank guarantee but different too. The letter of credit ensures that a transaction proceeds as planned, while bank guarantees reduce the loss if the transaction doesn’t go as planned.

You can choose from various types of bank guarantees, such as payment guarantee, performance bond guarantee, advance payment guarantee, and bid bond/ tender bond guarantee. You can visit their web site, http://www.importletterofcredit.com/bank-guarantee/ for detailed information on bank guarantee types and procedure.

For more info please visit: http://www.importletterofcredit.com/letter-of-credit/