Frequently asked questions
Search the frequently asked questions page to find the information you require and please feel free to ask us a question directly by filling in the form. We aim to reply within 2 working days. You can find information about the use of bank guarantees, questions about demand bank guarantees, questions about bank guarantees. answers about demand bank guarantees.
Important Information
Bank Guarantees should not be confused with MTN’s Medium Term Notes. They are not the same.
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Bank Guarantees can not be bought or sold.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Defunct Bonds may have collector value, but will rarely have any real significant value.
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No you can not discount a bank guarantee. The confusion arises where a lender offers an LTV, (Loan to Value), of say 90% of face value of the Bank Guarantee, which could look like a 10% discount. The Bank Guarantee is not being discounted it is being lent against or credit lined, which is exactly the purpose for which it was issued. Read More
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
MT 760 is a dedicated message type for transmitting on a bank to bank basis, Bank Guarantees, Standby Letters of Credit and Documentary Letters of Credit. Read More
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
MT 799 is designated as a free flow message and is used in a number of communications, but is also utilised as a pre advice for Bank Guarantees, Standby Letters of Credit and Documentary Letters of Credit. Read More
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Swift or (Society for Worldwide Interbank Financial Telecommunications) allows financial institutions across the globe to send and receive financial messages in a standard and secure manner. Read More.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
The Swift code for transferring Bank Guarantees is MT 760.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Obtaining a Bank Guarantee
Yes, you can lease a Bank Guarantee. However the correct technical term is Collateral Transfer.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
The average cost of leasing a Bank Guarantee is 6% of the face value.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Investors such as Hedge Funds, Sovereign Wealth Funds, and Private Equity Funds lease Bank Guarantees because they may generate a better return on investment than some other parts of their portfolio.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
What is a Bank Guarantee
Bank Guarantees are not a Financial Security.
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Bank Guarantees are non-divisible.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Bank Guarantees are not issued with a credit rating.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Bank Guarantees are non-transferable.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
A Bank Guarantee is a non-interest-bearing instrument.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Bank Guarantees can not be discounted.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Bank Guarantees can be issued against assets.
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Bank Guarantees can be issued against cash.
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Bank Guarantees can be issued on margin.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Bank Guarantees are not issued to investors to raise cash. A better instrument would be an MTN or Medium Term Note.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Bank Guarantees can not be traded.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
No you can not buy or sell a Bank Guarantee.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
No you can not trade a Bank Guarantee.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
A Bank Guarantees does not carry a CUSIP identification code. For further information on CUSIP please refer to the format of bank guarantees.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
A Bank Guarantees does not carry an ISIN identification code. For further information on ISIN please refer to the format of bank guarantees.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
A demand bank guarantee can be monetised in order to finance a property development project.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Types of Bank Guarantees include :
- Performance Guarantees
- Financial Guarantees
- Payment Guarantees
- Contract Execution Guarantee
- Tender Guarantee
- Warranty Execution Guarantee
- Customs Guarantee
- Advance Payment Guarantee
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
The term cash backed when used in conjunction with a Bank Guarantee is incorrect and misleading.
The term cash backed is usually used by companies who do not have a good working knowledge of bank guarantees, and they should be treated with caution.
Looking to arrange or monetise a Bank Guarantee? We can recommend companies that are highly rated by our readers.
Verbiage refers to the specific text setting out the terms of the Bank Guarantee.
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