BANK INSTRUMENT

BANK GUARANTEE



Deniz Finance - Financial Instruments for Your Business Needs

Deniz Finance B.V. offers a variety of financial instruments to support your business transactions. Here's a breakdown of some key offerings:

Understanding Bank Guarantees and Standby Letters of Credit:

  • Bank Guarantee (BG): A guarantee issued by a bank on behalf of a client, assuring fulfillment of a financial obligation to a third party. If the client defaults, the bank covers the cost.
  • Standby Letter of Credit (SBLC): Similar to a bank guarantee, but with a focus on the client's creditworthiness. The issuing bank promises to pay a beneficiary if the client fails to meet specific obligations.

We can help you obtain either a Bank Guarantee or Standby Letter of Credit, even if you lack a direct relationship with a top-rated bank. Here's the process:

  1. Submit your request: Provide us with your company information, preferred terms, and supporting documents for review.
  2. Upon approval: We'll send you a formal agreement outlining the terms and conditions.
  3. Finalize the agreement: Sign the agreement and make an initial processing fee payment.
  4. Bank issuance: Once approved by the bank, you'll receive a pre-advice message followed by the official Bank Guarantee (MT760) or Standby Letter of Credit (MT760).
  5. Payment is due: Settle the leasing/purchasing cost within 90 days.

Key Points:

  • Leasing vs. Purchasing: Leasing is a cost-effective option but cannot be monetized. Purchasing allows monetization but comes with a higher upfront cost.
  • Monetization: We can only monetize purchased Bank Guarantees (at 80% LTV).

Obtaining a Bank Draft: A bank draft is a secure method for sending or receiving a large sum of money. We can facilitate obtaining a bank draft, even if you don't have a direct relationship with the issuing bank.

Lost Bank Draft? We Can Help: Deniz Finance maintains detailed records and can assist you in replacing a lost or destroyed bank draft.

Understanding SWIFT MT Messages: 

For your reference, we've included a list of common SWIFT MT messages used in international payments and trade finance.