Guarantee Services for Trade

• Remove the need to use cash which improves your working capital.
• Provide confidence to parties that you deal with by showing that your company is a sound and reliable business and has the ability and required skills to fulfil the work being commissioned or the contract being entered into.
• Secure payment for the beneficiary (the contracting party) in the event that the contractual promises are not fulfilled.
• Come with prompt service and prompt issuance of bonds (in some circumstances bonds can be issued on the same day as the lodgement of the application).
• Are available in USD and KHR.
• Are supported in English and Khmer.
• Are subject to approval under the bank’s normal credit assessment process.

A bank guarantee is an agreement by J Trust Royal to pay a specified amount to a specified third party (principal) on behalf of our customer. This enables our customer to enter trade or financial arrangements without the need to outlay cash (or security) to satisfy conditions dictated by a trade or financial contract.

While a Documentary Letter of Credit is the primary payment mechanism for a transaction, a Standby Letter of Credit serves as a secondary payment mechanism. A bank will issue a Standby Letter of Credit on behalf of a customer to provide assurances of his ability to perform under the terms of a contract with the beneficiary. The parties involved with the transaction do not expect that the Standby Letter of Credit will ever be drawn upon.

Should your trade transaction require a Standby Letter of Credit, J Trust Royal can act on your behalf, whether you’re on the import or the export side.