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  • International Bank Guarantee / Standby L/C

    The KBank International guarantee and Standby L/C affords you greater confidence toward any type of international trade and business

    KBank’s international bank guarantee/standby L/C, accepted worldwide, helps enhancing your business potential, enabling you to capitalize on more opportunities to expand into new markets and strengthen the trust between you and your partner…for your boundless business opportunities.

  • Key Features

  •  The KBank international bank guarantee/standby L/C enables you to:

    • Reassure your trade partners, because Kbank, as a guarantor offers an undertaking against payment or performance on your behalf.  
    • Enhance your business credibility with KBank’s trustable credit rating making our international bank guarantee/standby L/C acceptable worldwide.  
    • Take advantage of greater opportunities to expand into new markets and conduct trade with new business partners because exporters and importers can use our international bank guarantee/standby L/C to cushion risks that could arise in doing business with unfamiliar trade partners, or in new markets.

    In addition, KBank is ready to provide advisory services on risks arising from the terms and conditions in bank guarantee/standby L/C. With a network of correspondent banks worldwide, KBank can help you to expand your international trade business extensively.

  • Product Details

  • Type of Service

    KBank issues Bank guarantee in form of “guarantee” or “standby L/C” to a beneficiary in a foreign country  by the request of our client in Thailand to undertake the payment or performance liability toward the beneficiary.As a solution provider, we can customize our service to meet your business need. KBank International Guarantee Solution offers three types of obligation you undertake as follow:

    (1) Payment Security Type

        (1.1) Advance Payment Bond
    Under Advance Payment condition KBank issues an advance payment guarantee at the request of the exporter/seller in Thailand to guarantee that if the delivery of goods has not been completed, the importer/buyer will be able to claim from KBank, giving your customer, as the importer, has strong confidence to pay you advance money.
    The Applicant of Bank Guarantee/Standby L/C    :    Exporter    Seller    Contractor            
    The Beneficiary of Bank Guarantee/Standby L/C :    Importer    Buyer    Hirer

        (1.2) Commercial Bond/Payment Bond
    Under open-accounts payment condition, KBank issues commercial bonds/payment bonds at the request of the domestic importer/buyer to guarantee that if there is no payment made on delivered goods, the exporter/seller will be able to claim from the issuing bank, assuring the exporter/seller in a foreign country to ship goods and provide you payment term after shipment
    The Applicant of Bank Guarantee/Standby L/C    :    Importer    Buyer    Hirer
    The Beneficiary of Bank Guarantee/Standby L/C :    Exporter    Seller    Contractor

     

    (2) Performance  Security Type

        (2.1) Performance Bond
    KBank issues a performance bond to support an obligation of the applicant to perform in accordance to the terms and conditions of the contract, or in case of default on contract or their offering of goods and services, wherein the beneficiary is able to claim compensation from KBank.
    The Applicant of Bank Guarantee/Standby L/C    :    Exporter    Seller    Contractor
    The Beneficiary of Bank Guarantee/Standby L/C :    Importer    Buyer    Hirer

        (2.2) Retention Bond
    KBank issues a retention bond to support an obligation of the application to account for any defects occurring in products or services within timeframe period.   
    The applicant of Bank Guarantee/Standby L/C is requested by :    Exporter    Seller    Contractor
    The Beneficiary of Bank Guarantee/Standby L/C :    Importer    Buyer    Hirer

        (2.3) Bid Bond
    KBank issues a bid bond to support an obligation of the applicant to execute a contract if the applicant is awarded a bid.
    The Applicant of Bank Guarantee/Standby L/C    :    Exporter    Seller    Contractor
    The Beneficiary of Bank Guarantee/Standby L/C :    Importer    Buyer    Hirer

     

    (3) Collateral Security Type

        Financial Bond/Loan Guarantee
    In certain circumstances, our Financial Bond/Loan Guarantee can be used as collateral to obtain loans from other private financial institutions abroad. Loans are invariably granted to customers holding standby L/Cs issued by banks  with solid financial status.
    The Applicant of Bank Guarantee/Standby L/C :    Kbank’s Customers on behalf of their subsidiary in a foreign country who need financial credit line from foreign bank.
    The Beneficiary of Bank Guarantee/Standby L/C    Lending Bank
     

    Required Documents

    1. Application for Issuance of Letter of Guarantee.

    2. Other related documents such as a relevant sales contract, an invitation for bidding and/or your required wording format (if needed)


    Terms & Conditions

    1. The customer must have international bank-guarantee credit line to issue a guarantee/standby L/C

    2. The customer must get KBank approval of your own Wording format in guarantee/standby L/C or you agree to use our standard formats

     

    Procedure of International Bank Guarantee/Standby L/C

    A credit line request with purpose to issue International Bank Guarantee along with collateral must be submitted for KBank credit line approval

    1. A guarantee or standby L/C application is to be submitted at International Trade Service Center.

    2. KBank checks application, related documents and your credit line availability.

    3. In case of approval, the customer pays relevant fees, thereafter KBank issues a guarantee/standby L/C to the beneficiary in a foreign country and delivers a copy document  to the applicant with receipt.

    4. An advising bank there advise guarantee/standby L/C to the beneficiary and notify KBank.


     

    Rates & Fees

    The standard commission depends on the types of Guarantee/Standby L/C and other risk assignment, varying from around 1.5 - 2.5% per annum.

  • How to apply or use


  • For more information, please contact International Trade Service Center or your KBank Relationship Manager (RM), or call our K-BIZ Contact Center 02-8888822.

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