A Bank Guarantee acts as an undertaking or promise (a payment guarantee) by an issuer bank that in the event of a payment default or obligation by the applicant, the issuer bank (guarantor) shall meet the contractual liability. The Bank Guarantee agreement assures the beneficiary that the bank would pay the specified amount, in the case of its applicant’s default.

One must note that the obligation to pay is not of the applicant, but of the bank since the bank acts as the guarantor.

Bank Guarantees: A bank guarantee is a broad term and there are several types of bank guarantee that can help businesses. As a Provider/Facilitator of these programs via our trade platform, HELIOS will provide a Leased or Purchased Guarantee to a Receiver bank provided the beneficiary has a credit facility opened to receive such undertaking.

‘Leasing’ of Bank Guarantees (BG) or of Standby Letters of Credit (SBLC) are undertaken through a transfer or reassignment of Bank Securities in favor Client to act as Collateral against a Loan/Facility; known as a Collateral Transfer.
A Collateral Transfer is the Provider using her own assets to raise a specific Bank Guarantee through her issuing bank for the sole use of the specified Beneficiary, and for the specified term.

In summary to obtain the MT760 Guarance from HELIOS, we follow these simple process;
– Clients submits their request with all compliance document; including  project summary, any trade agreements for review and assessment.
– HELIOS reviews and conducts due diligence to determine if we should approve or disapprove.
– If approved we will sign a contract with client to set up a Guarantee facility with the issuer bank on behalf of client. This is achieved by reassigning Collateral Security in favor of client.
– Upon countersigning of contract, the client is given their copy for review and approval; also cost of setup of facility is discussed and invoice issued for the service as client’s commitment towards the service costs.
– Upon confirmation of client’s commitment towards the issuance, HELIOS  signals their bank issuers to proceed with the BG issuance.
– Issuer bank proceeds in line with contract terms and bank issuance standards to the Beneficiary or Receiver.

Contact our support team to request for the Transaction procedure and full terms.

Our solution of reassigning Collateral Security /Bond in their favor; or engaging client in a syndicate to allow them access to Bank Guarantee eliminates lengthy approval processes, thereby removing the excessive bureaucratic procedures and red tape to obtain approvals and setup of Guarantee or Credit Facility with the Issuer Bank.

Are you looking for a Letter of Credit or Bank Guarantee?

Have you been refused SBLC or Finance?

Do you have a contract or trade order larger than your financial capacity?

We can help you to secure lucrative contracts by providing Bank Guarantee.

HELIOS provides trade finance facilities, financial instruments from top rated banks on behalf of Importers, Exporters, private investors, contractors, real estate developers etc.

With our asset/cash backed Bank Instrument as Collateral the Beneficiary will secures himself against the risk of:
– Customer’s insolvency or against refusal to pay,
– Customer’s resignation from transaction and refusal to accept goods.
will receive 100% payment or recompense if they defaults on the agreement.

You can get trade finance services today no matter your status or the trade size.

Provide bank instruments

Bank Instruments Transactions:

  • Import/Export Trade
  • Collateral for Project Finance
  • Purchase Bank Instrument (Bank Debentures)
  • Other Credit Enhancement: Purchase REO Pool/Real Estate/Businesses & Companies

Bank Instruments Type:

  • Letter of Credit
  • Standby Letter of Credit (SBLC)
  • Bank Guarantee (BG)
  • Certificate of Deposit (CD)
  • SWIFT MT799
  • SWIFT MT760

Bank Instruments Institutions:

  • Top Money Center Banks: HSBC, Credit Suisse, Deutsche Bank, Chase Bank, Wells Fargo, and others
  • International Banks: United States
  • Offshore Banks: Europe, Middle East, China, Singapore, Hong Kong, Costa Rica
  • Offshore Trusts: Panama, Switzerland, Belize

Bank Instruments Terms:

  • Minimum $1M account size up to $1B
  • month to month account service or 12 months with extensions
  • See Procedures for more information

What Types of Bank Instruments Are Available?

Helios Investments provides a suite of bank instruments for credit enhancement to choose from including Letters of Credit, Standby Letter of Credit, Bank Guarantees, and Certificate of Deposits. Other types of instruments are available upon request on a case by case basis.

Letter of Credit (LC) Bank Instruments

Documentary Letters of Credit are bank instruments issued from an applicant’s bank on behalf of a beneficiary to aid in mitigating risk and creating a layer of protection against non payment. Similar to a bank guarantee it aids the beneficiary to have confidence a rated financial institution will ensure payment for service rendered once all terms and conditions contractually are met. However, unlike a bank guarantee, the letter of credit, as in the case with a standby letter of credit, the instrument is required as the mechanism by which payment is made; whereas bank guarantees are usually only drafted against or called in the event of default.

Because Letters of Credit are negotiable debt instruments, meaning the bond or debt may be passed onto another party for collection, the value may also be monetized like the value of a top bank rated and issued bond. This gives the ability to use Letters of Credit not only for their primary use as methods of payment, but they can also be valued and pledged in terms of loans and debt.

Standby Letter of Credit (SBLC) Bank Instruments

Unlike traditional letter of credit bank instruments where the beneficiary obtains payment against papers demonstrating delivery, the Standby Letter of Credit (SBLC) may allow a beneficiary to obtains payment from a financial institution even when the applier for the credit has neglected to perform as per bond.

A key principle to remember with the Standby Letter of Credit is banks deal only in documents or goods and do not involve themselves in the commitments and contracts between the two parties directly. The concern of the issuing bank is the terms and conditions of the letter of credit itself. The decision to pay by an SBLC is based entirely on whether the documents submitted to the bank appears on their face to comply with the terms of LC bank instruments.

Bank Guarantee (BG) Bank Instruments

Bank Guarantees (BG) are negotiable financial debt bank instruments made by a guarantor bank on behalf of the applicant to mitigate risk on behalf of the beneficiary party. It may be used to assist in trade finance, international trade, domestic trade, and various other types of contracts where the backdrop of a vetting third-party (the issuing bank) could be used.

When a bank issues a Letter of Guarantee to a beneficiary bank it looks at the credit worthiness of the applicant, not the transaction at large. Thus the ability to acquire bank instruments like a Bank Guarantee largely is based on the relationship it has with its client.

The BG is very similar to that of a LC in that it guarantees payment on behalf of its client to the beneficiary. However, a Bank Guarantee is usually used in the event there is default. If for instance a purchaser of goods issues a BG to the seller of goods and if after delivery payment were not made for some or all of the contracted amount, these bank instruments acts like a draft or check allowing the Beneficiary to cash it in.