A payment guarantee from your bank to a beneficiary (third party) when you failed to deliver pre-agreed obligations
- Imagine you’re a local brake pad manufacturer and you are trying to supply to Nissan Malaysia. However, Nissan Malaysia is sceptical of your ability to fulfil such a large order in desired quality
- You can request our bank to issue a BG-i in favour of Nissan Malaysia. The bank will guarantee the payment to Nissan Malaysia in the event that you fail to deliver the pre-agreed order
- With this solution, you have the opportunity to work with bigger corporations and expand your business faster
- Imagine you are a local farmer and you are planning on buying a tractor from a newly established Vietnamese manufacturer. In order to ascertain the performance of the tractor, you would only pay if the tractor is performing up to your standards.
- You can request our bank to issue a BG-i in favour of the seller. The BG-i issued to seller will guarantee payment in the event you fail to pay on due date but you may defer the payment to check on the tractor’s performance.
- With this solution, you will be able to ensure the tractor’s quality, and the manufacturer can deliver the tractor to you with ease of mind.
- BG-i is based on Shariah contract of Kafalah (guarantee)
- Issued in Ringgit Malaysia and major Foreign currency
- Fixed expiry date and Fixed claim period
- Fee collected upfront
- Favouring beneficiaries acceptable to the Bank
- Non-Bank standard format requires approval
- Bank to honour claims within 24 hours upon receipt of valid claim