What is Bank Guarantee-i?
Government procurement contracts would also require the submission of Bank Guarantee which amounts to 5% of the contract value. Without any existing banking facility, the standard requirement is 1:1 FDs for any issuance of the required Bank Guarantee.
Securing a bank facility for Letter of Credit is never easy. Even if a company is able to secure a facility, the terms can be unsettling. Banks would require an upfront security deposit of up to 40% for the guarantee.
Under government procurement contracts, performance bonds are issued under three categories:
- Bank Guarantee
- Insurance Guarantee
- Financial Institutions Guarantee
As a financial institution approved and accredited by the Ministry of Finance and e-Perolehan, IFSB can issue performance guarantees.
What You Need
We also offer Advance Payment Guarantees – which work in a similar manner to Performance Guarantees, except that the government is entitled to reclaim the advanced payment made if the contractor does not complete the job awarded.
We offer solutions tailored to meet your specific needs. Our rates are competitive with flexible terms, and initial approval process is fast. Our team of experienced and dedicated finance specialists can advise and provide you with access to the best funding solutions for your business.
Begin Your Process In Obtaining A Bank Guarantee-i From Us
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Submit to IFSB
- Original Letter of Offer (LO) or Contract.
- Format of Performance Guarantee.
- One (1) copy of Arahan Pembayaran – signed by a government officer.
- Security Deposit – 30% of Performance Bond and other charges as advised.
- Undertaking and Indemnity Letter.
Scroll to the right to know more.
*Subject to completion of all documents submitted. Terms and conditions apply.
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