Issuing an L/G

1. Tender Guarantee

• The aim of a Tender Guarantee is to guarantee compensation to the extent of the guaranteed amount to the beneficiary of the guarantee if the applicant of the guarantee (Bidder) refuses to conclude a contract with the beneficiary, or withdraws its tender before the deadline, or fails to present a performance guarantee to the beneficiary after conclusion of the contract.

• A Performance Bond is a written commitment issued by the bank, at the request of the Applicant (Principal), in favor of the buyer or the employer of the contract (the Beneficiary), undertaking that in the event of default by the principal in due performance of his contractual obligations, the bank will pay to the beneficiary for the amount it guaranteed. Usually the amount of a performance guarantee is 15-20% of the value of the contract.

• An Advance Payment Guarantee is usually required where, under the terms of a contract for the supply of equipment or services, an advance payment is to be provided to meet the Contractor\s mobilization or other up-front costs. The amount of the advance payment is commonly between 10% and 20% of the Contract price.

• Most new business owners use equipment leasing to get their business up and running. Start up costs can be intimidating for a start up business without purchasing special equipment. Leasing guarantee is intended for small and medium-sized companies, who wish to finance the purchase of machinery and equipment, or buildings and real estate;
• By applying for a Leasing Guarantee, you can gain the right of using equipment belongs to the lessee and develop your business faster with lower capital funds.

• A loan guarantee is a written commitment issued by BOC at your request, in favor of another bank, to guarantee their loan facility to you or your subsidiaries/partners.
• If you need a financial facility for yourself or for your subsidiaries or your partners in another bank, you may wish to use the credit line approved by BOC to you or you may wish to use your deposit margin kept in our bank.
• By a Loan guarantee, you can lift your image in the financial market and you may get a relatively lower interest cost for financing in a bank which you are not quite familiar with.

• Upon your request, after you signing a contract with the supplier, BOC issue a Payment Guarantee in favor of the supplier, to guarantee that you will perform your payment obligations under your contract of buying commodities, technologies, labor services, etc.
• Payment Guarantee has similar functions with Letter of Credit;
• The form of Payment Guarantee is flexible and suitable for different needs.

• Importers often need to clear the cargos from the customs as early as possible to avoid port demurrage fees and to arrange manufacturing or trading so as to accelerate the cash flow. The Customs Duty Guarantee can assist the importer to clear the cargoes from customs with the import duty payable to the authorities. That can help the importer to release the pressure on working capital cash flow and to improve their logistics performance.

• When you undertake a contracted project or you are in charge of providing equipment and installation, a Quality Guarantee or a Maintenance Guarantee is usually needed. BOC will issue a Quality Guarantee or a Maintenance Guarantee at your request in favor of the buyer, to ensure the buyer to have no worry about the quality of the equipment and in case of need, your maintenance service is available after the equipment or installation is delivered. With a Quality Guarantee, you can lift up your goodwill and increase your competitive strength in the market.