Bank Guarantee
A bank guarantee is a lending institution's promise to cover a loss if a borrower (their customer) defaults on a debt to a third party.
Exclusively issued by Euro Exim Bank Ltd in St. Lucia
The guarantee lets a company buy what it otherwise could not, thereby helping business growth and promoting entrepreneurial activity.
Whilst these guarantees can come in various forms Euro Exim Bank Ltd specialises in performance and financial guarantees only, which are exclusively not cash backed.
Types of Bank Guarantee we offer
Advance Payment Guarantee
Bid Bond Guarantee
Deferred Payment Guarantee
Foreign Bank Guarantee
Performance Guarantee
Process Flows
- Fill out the form available in the bottom right corner (Acquire your Trade Instruments) or contact us at this link. After completing the form, a sales team member in your region will contact you within a couple of days.
- They will provide you with an E-KYC consent letter and invoice to start the KYC process. Please note that the E-KYC fee is non-refundable and non-adjustable against the issuance fees. We don't accept third-party payments.
- After the E-KYC fee is paid, you will receive an email with the client KYC portal link to upload all the required KYC documents.
- After submission, our third-party service provider will provide feedback and assist you in completing the process.
- The buyer (Applicant) applies for a BG from EEB and submits an application, underlying agreements, and other necessary documentation.
- EEB evaluates the creditworthiness of the applicant and assesses the risk involved in issuing the BG. This may involve checking the applicant's financial standing, business reputation, and ability to fulfil the BG's terms.
- If everything is in order, EEB creates a draft instrument and sends a quote to you stating our charges.
- Issuance fees are paid to EEB, and the BG is issued to the Beneficiary’s bank (advising bank) in the Beneficiary's country.
- The beneficiary receives the BG and verifies that it meets the requirements specified in their contract or agreement with the applicant.
- The beneficiary, by presenting the required documents, ensures that EEB makes payment to the beneficiary as per the terms of the BG.
- If the BG expires without being drawn upon, it becomes null and void. Depending on the agreement, the BG may be renewed or extended if needed.
- Once all obligations under the BG have been fulfilled (or expired without being utilized), the BG is closed, and any collateral or security provided by the applicant is released.
Tender Guarantee
A Tender Guarantee is issued by the Bank at the request of the Tenderee, for bids of construction or procurement of projects, committing that the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee once the bid is won.
Process Flows
- The applicant fills out an application form or a contract for issuance of a letter of guarantee and tenders same to the bank along with the specimen guarantee format required by the beneficiary.
- The applicant pays margin as per the banks requirement.
- Examination and issuance of letter of guarantee if as per the banks tender guarantee format.
- If the format defers from the banks guarantee format same could be referred for legal advice.
- If covered by 100 % cash margin, the bank may issue the guarantee after obtaining sanctions from the credit authority
- Upon customer qualification, underlying transaction and relevant documents EEB confirms the customer's margin or credit line and other mortgages
- EEB issues the letter of guarantee.