A Bank Guarantee ensures that your commitments are backed by a trusted financial institution. At Terkar Capital, we help you secure a guarantee tailored to your needs, empowering you to fulfill obligations without immediate cash outflows.
Traditionally, Cash Credit and Overdrafts have been the go-to options for working capital. However the financial landscape has evolved, and so have banking solutions. Today, businesses have a plethora of options tailored to their specific needs. Among these, the Bank Guarantee has emerged as a powerful tool for fostering trust and streamlining operations.
Generally, working capital facilities can bifurcate into two segments. One is fund-based and the other is non-fund-based. However, a BG is a non-fund-based credit facility. It is an unsecured debt funding instrument. Terkar Capital arranges loans against the bank guarantee.
An affordable method for payment guarantee
Issued by a bank with Good Credit
Bank's Guarantee of payment to third-party
Mitigate risks for both the Buyer and the Seller
It can be Revocable or Irrevocable
(*T&C Applied)
To obtain a BG Facility in India, applicants typically need to submit a duly filled application form along with
Applicants should check with the specific bank for any additional requirements and follow their guidelines for a smooth application process.
Whenever the buyer and seller need assurance on the payment and delivery of the product or service, a bank guarantees come into the picture. Below is the standard process followed for the BG-backed transaction.
The buyer/applicant approaches the bank to issue the BG to the seller. The applicant provides all the necessary inputs which include, the amount, date, validity period, the purpose of the issuance, etc.
Once the bank receives the required documents, it issues the bank guarantee to the seller. The bank may charge fees to the buyer/applicant. The bank will consider its mortgage/collateral before issuing the BG. If the requested amount is more than the bank’s comfort, the buyer/applicant may need to arrange for more security deposit.
Once the seller receives the BG from the Buyer, it confirms to the seller his assured payment. So the seller can start the execution of the order and delivery of the goods and services.
When the seller has performed all the terms and conditions of the payments, the buyer has to make the payment to the seller. In any case, if the buyer refrains from making the payment or delays the payment, then the BG issuing bank is liable to make the payment without question to the seller. And if the buyer makes the committed payment, then the bank guarantee stands void.
How Terkar Capital executes a bank guarantee process, Learn here.
Regarding the bank guarantee, multiple banks provide BG issuance and discounting facilities. The buyer or seller may be confused about which one to opt for.
Terkar Capital provides loans against bank guarantee. We understand the role of the BG Facility in India from both sides, from the buyer side and the seller side. It is not only limited to the issuance of the bank guarantee but also to the discounting of the guarantee. We make sure that our professional execution helps all the parties (Bank, buyer, and seller) to complete the transaction without any hassle.
1. Understanding Client's Requirement
A tailored funding solution based on a thorough evaluation of the client’s business goals and financial requirements.
3. Documentation
Ensuring meticulous preparation of all necessary documents to facilitate a seamless funding process.
5. Soft Approval From Financial Institutions
Securing preliminary approval from financial institutions based on the client's profile and funding needs.
7. Disbursement
Coordinating with financial institutions to ensure timely release of funds.
2. Analysing the Strengths and Opportunities
Leverage the client's financial and operational strengths to optimize their funding prospects.
4. Identifying the Right Financial Product
Recommending the most suitable financial product to align with the client’s specific goals and requirements.
6. Actual Submission of the Documents
Submitting all finalised and verified documents to the financial institution for formal processing.
8. Funding As Required
Providing funds customised to the client’s operational or expansion needs, ensuring business growth.
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1. Understanding Client's Requirement
A tailored funding solution based on a thorough evaluation of the client’s business goals and financial requirements.
2. Analysing the Strengths and Opportunities
Leverage the client's financial and operational strengths to optimize their funding prospects.
3. Documentation
Ensuring meticulous preparation of all necessary documents to facilitate a seamless funding process.
4. Identifying the Right Financial Product
Recommending the most suitable financial product to align with the client’s specific goals and requirements.
5. Soft Approval From Financial Institutions
Securing preliminary approval from financial institutions based on the client's profile and funding needs.
6. Actual Submission of the Documents
Submitting all finalised and verified documents to the financial institution for formal processing.
7. Disbursement
Coordinating with financial institutions to ensure timely release of funds.
8. Funding As Required
Providing funds customised to the client’s operational or expansion needs, ensuring business growth.
Check your CIBIL score for free.
We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.
Generally, you can expect the process to take anywhere from a few days to several weeks.
A Bank Guarantee can generally not be revoked unilaterally. However, there might be provisions for amendment or cancellation under specific circumstances.
If a valid claim is made, the bank will pay the beneficiary the guaranteed amount. The bank then recovers the amount from you.
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