Guarantee Services for Trade
Mitigate your trading risks with our range of financial guarantee solutions.
We offer Bank Guarantees and Standby Letters of Credit.
Our guarantee products:
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.