A. Local Bank Guarantee
Bid Guarantee: to ensure that the Applicant has been issued a Bid Guarantee, securing the bid, following from the invitation to bid required by the Beneficiary.
Performance Guarantee: to ensure that the Applicant executes the contract to the satisfaction of the Beneficiary, otherwise a financial penalty will be paid.
Payment Guarantee: to ensure that the Applicant pays a certain amount of money by a certain date.
Advance Payment Guarantee: to provide a safeguard for the Beneficiary by refunding the amount advanced by the Beneficiary if goods are not shipped or the contract is not complied with.
Retention Money Guarantee: to ensure that the Applicant has been issued a Retention Guarantee for withdrawal of the money that the Beneficiary keeps for guarantee on quality of building, goods or services.
B. Overseas Guarantee
Overseas Guarantee/ Standby Letter of Credit (SBLC): a guarantee of payment issued by PPCBank on behalf of a Client that is used as a payment guarantee if the Client fails to fulfill a contractual commitment with a third party.
C. Shipping Guarantee
Shipping Guarantee: issued by PPCBank to guarantee that the shipping company will release goods to the Customer without the presentation of the original Bill of Loading.
Requirements
National ID/Passport
Tax Patent/Tax Registration
Certificate of Business Registration
Memorandum of Association
Contract/Invitation for Bid
Cash or Collateral
Account with PPCBank
Benefits
Credit worthiness
Confidence of performance
Risk reduction
Fees:
| A. | Local Guarantee | ||
| 1, Guarantee Against Cash Deposit | Suggested Rate | Comments | |
| Issuance Fee | 0.1% p.m. min. $10 max. $500 p.a | – | |
| Amendment- Increase in Amount & Validity | 0.1% p.m. min. $10 max. $400 p.a | – | |
| Amendment– Not Increase in Amount & Validity | $10 flat rate | – | |
| Duplicated Issuance | $10 flat rate | – | |
| Cancellation of Guarantee | $20 flat rate | Free of Charge for Bid Guarantee | |
| 2, Guarantee Against Collateral Deposit | |||
| Issuance Fee | 0.14% p.m. min. $50 | – | |
| Amendment – Increase in Amount & Validity | 0.14% p.m. min. $50 | – | |
| Amendment– Not Increase in Amount & Validity | $10 flat rate | – | |
| Duplicated Issuance | $10 flat rate | – | |
| Cancellation of Guarantee | $20 flat rate | Free of Charge for Bid Guarantee | |
| B. | Overseas Guarantee/Standby LC | ||
| Issuance Fee | 0.15% p.m. min. $50 | +Cable Charge $50 | |
| Amendment- Increase in Amount & Validity | 0.15% p.m. min. $50 | +Cable Charge $20 | |
| Amendment- Not Increase in Amount & Validity | $25 flat rate | +Cable Charge $20 | |
| Cancellation of Guarantee/SBLC | $30 flat rate | +Cable Charge $20 | |
| Payment of Claim | 0.125% min. $50 and max. $200 | – | |
| C. | Shipping Guarantee | ||
| SGLC (Relating to bill under our L/C) | $30 flat rate | – | |
| SG (Relating to inward collection bill handled by us) | 0.3% for 2 months | Subsequently 0.3% p.m. | |