The business is connected to risk in a certain way. That’s why trade partners use bank guarantees to make sure the security of negotiated transactions. If you looking for bank guarantee providers in Dubai, then we at Taskmaster here for you, we will provide you the best services in Dubai.
Actually, the bank guarantee works like a loan system, but it is cheaper compared to a loan. How to be, in this situation, banks collect a fixed required fee, which is typically a transaction amount percentage.
The bank guarantee providers in Dubai is attractive, as they reduces the potential risk of amount transactions and makes sure complete discharge of the obligations stipulated in contract.
The parties to the bank guarantee are:
- Beneficiary : legal or natural customer who requests payment and who gets payment amount from the bank.
- Principal : the creator of issuing the bank guarantee.+
- Guarantor : an institution of financial, which upon receiving a payment request, immediately assumes the obligation to pay for the person specified in the contract.
A Bank guarantee is beneficial not for only owners of the business but also for banks. Unlike loans, they don’t need immediate economic coverage. In addition, these kinds of payments that on guarantees some time can be delayed or may not even be necessary. To the provision of this type of guarantee, a commission fee is charged compulsorily and in full amount. In our point of view, you can consult with professional bank guarantee providers in Dubai, who went through this process many times.
Types Of Bank Gurantees
- Payment guarantee – make sure payment on time for goods delivered or services rendered.
- Tender guarantee – make sure the payment request is fulfilled if the subsequent tenderer will not agree to provide cooperation.
- Tax and customs guarantees – make the obligations fulfillment to tax and customs officers.
- Advance payment guarantee – make sure the return of advance payment, if the conditions of the payment transaction are not met in the condition of time or quantity.
- Performance guarantee – gives aguarantee for that all services, works, or goods would be delivered in full and on time.
The guarantee may be issued by the bank of UAE or by any other bank. And in the first matter, it’s a direct process for bank guarantee, and in the second matter, it is a counter-guarantee.
According to the conditions of monetary payment, the bank guarantee may be conditional or nonconditional. in the situation of a conditional guarantee that payment is done, the beneficiary’s written request, and the availability of the confirming of a document the fulfillment of the obligation by the head. In case a bank guarantee is unconditional in the United Arab Emirates, the beneficiary’s written request availability is sufficient to fill the payment.
In addition, the bank guarantees may be unsafe and secure. In case there is another way to ensure this, for instance, a promise of assets, a bank guarantee will be considered safe.
Documents Required for Bank Guarantee
- Valid passport or national ID with UAE residence visa and Emirates ID of all signing authorities and shareholders. If applicable
- Valid legal documents such as trade license, free zone certificate of incorporation, certificate of commercial registration, partnership agreement, etc.
- Power of attorney, if applicable
- Address proof
- Information of ultimate beneficial owner
- Company profile and bank reference, if applicable
- Audited financial statements
These are the require document that necessary for bank guarantee. The bank guarantee providers in Dubai will help you in documentation.
How we can help you
We at Taskmaster act as bank guarantee providers in Dubai. After the process of submitting their bank guarantee request, the merchant contacted us. Because the customers wanted to consult with us in complete detail; our business finance system gets arrangement an apparent meeting with clients. The merchant clear all explanation of their needs to us. We understand and their project; and also give details of the whole process to receive a bank guarantee on the client’s behalf. When the merchant feels convinced with the process, we start the process with the next phase. In addition, we provide the agreement of services to be signatures by the merchant; also asked to pay the service amount. Then a customer had signed the contract and made payment of the service fee.+
Our professionals structured their project and we sent the bank guarantee format for understanding their thought. The same day, the customer gave approval to the bank guarantee draft; issuance fees were paid. When cleared the invoices and received all documents; after that, we gave instruction to our bank for swift a letter of bank guarantee to the bank of the seller.