Where it can help
May improve procurement timing and preserve immediate cash for operations.
SOLUTIONS / BG-backed · up to 270 days
Procurement Facility
Explore eligible procurement arrangements supported by an acceptable bank guarantee. Supplier settlement and deferred payment obligations must be documented and matched to the underlying trade cycle.
WHO IT MAY SUIT
Bulk purchasers, manufacturers, distributors and contract-led businesses
When to consider this facility
Raw materials must be secured before the finished-goods sale generates cash.
Use the facility for a defined, permitted business purpose with a documented source of repayment. Apply ahead of the cash requirement so that assessment, conditions and documentation can be completed.
What to weigh carefully
BG margin blocks liquidity; commission, procurement charges and an invocation can create substantial obligations.
THE CLIENT’S PERSPECTIVE
Make the numbers work first.
Add BG cash margin, commission and all transaction charges to the funding cost. Test whether sales proceeds arrive before the final payment obligation.
A practical preparation tip
Check BG wording, expiry, claim period and release conditions with the issuing bank and your legal adviser.
ILLUSTRATIVE CLIENT SITUATION
How the requirement might arise
A manufacturer plans a bulk input purchase against confirmed demand. Review would examine the issuing bank’s BG capacity, the supplier arrangement and stock conversion before considering a deferred procurement structure.
Hypothetical example for explanation. This is not an actual customer testimonial, completed transaction or assurance of funding.
Before you accept an offer
Ask for the lender’s identity, all-in rupee cost, annualised pricing where applicable, processing and other fees, security, guarantees, covenants, repayment schedule and default provisions. Confirm that the facility’s permitted use matches the proposed transaction.
Consider a lower-cost existing-bank enhancement or supplier terms where suitable. Defer borrowing if the purpose, underlying margin or repayment source cannot withstand a reasonable downside scenario.
Industry and professional scenes are AI-generated illustrations, not photographs of Bespoke offices, customers, staff or partner institutions.