Payment procedures are playing an undeniable role in all current commercial transactions, both domestic and international. To ensure transparency and certainty in the payment process, the application of payment guarantees is inevitable. So, what is a payment guarantee? Let's find out with sme.seabank.com.vn in the article below.
What is a payment guarantee?
Bảo lãnh thanh toán là một giải pháp tài chính trọn gói cho doanh nghiệp, giải pháp A payment guarantee is a comprehensive financial solution for businesses, this solution will be a form of guarantee, ensuring that the guaranteed party will make payments as committed.
Simply put, this is a written commitment by the guarantor (usually a bank or credit institution) to the beneficiary (the beneficiary) that if the guaranteed party fails to make full payment on time to the beneficiary under the sales contract, the guarantor will pay on their behalf. Payment guarantees help reduce risks for parties involved in commercial transactions, while increasing transparency and trust in the implementation of sales contracts and financial commitments.
The party guaranteed for payment must have good reputation and financial capacity
Regulations on payment guarantee fees at banks
Payment guarantee fees are often agreed upon by the parties involved and can fluctuate based on many factors. Below are the main factors that affect the guarantee fee:
- Guarantee value: The guarantee fee is usually calculated based on a percentage (%) of the guarantee value, which is the total amount that the Bank will have to pay if the guaranteed party fails to fulfill its commitment.
- Risk level Risk: The Bank can assess the risk level of the transaction and apply the corresponding fee. Transactions with higher risk levels usually have higher guarantee fees to compensate for the risk.
- Guarantee term: The guarantee term can also affect the guarantee fee. The fee can vary based on the guarantee term, for example, short-term or long-term guarantee.
- Agreement between the parties: The final guarantee fee is decided by agreement between the Bank and the guaranteed party. The parties can negotiate to reach a reasonable and fair fee.
Typically, the payment guarantee fee can range from about 1% to 3% of the guarantee value. However, it can sometimes be higher if the transaction is more complex or risky. Therefore, to know exactly about the payment guarantee fee, the parties often need to consult and negotiate with the Bank to clearly understand the specific terms and related costs in each specific case.
Fees related to payment guarantees are clearly defined by law
How is the payment guarantee process implemented?
To implement a payment guarantee through a bank, businesses need to prepare complete documents and papers to ensure management, inspection and approval by competent authorities. The payment guarantee process through a bank includes the following steps:
- Generating a guarantee request: The parties to the contract determine the need for a payment guarantee.
- Submitting a request: The guaranteed party provides the bank with documents such as a guarantee issuance request, legal and financial documents, and commercial contracts.
- Appraising the application: The bank evaluates the feasibility of the project, its legality, contract performance capacity, collateral and financial status of the guaranteed party.
- Issuing a letter of guarantee and contract: If the application meets the requirements, the bank will provide a letter of guarantee and a guarantee issuance contract.
- Payment (if necessary): In case the guaranteed party fails to fulfill its obligations, the bank will pay the beneficiary after receiving a request and complete documents.
The payment guarantee process will depend on each specific bank
Where should you choose a payment guarantee service?
Payment guarantee is an essential financial tool that helps businesses feel secure in purchase and sale transactions, limit payment risks and enhance reputation in the market. However, choosing a reputable and reliable payment guarantee service provider is not easy.
Understanding that, SeABank is proud to be one of the leading prestigious banks in Vietnam currently providing a comprehensive payment guarantee service with many outstanding advantages as follows:
- With professional services, Payment Guarantee at SeABank will help businesses easily build reputation and professionalism in deferred payment purchases with partners.
- Competitive guarantee fee: SeABank offers the most preferential payment guarantee fee on the market, helping businesses save maximum costs.
- Simple and quick procedures: The guarantee process is carried out quickly, helping businesses save time and effort.
- Dedicated support: SeABank's team of experienced consultants is always ready to support businesses in answering all questions and choosing the most suitable solution.
- Safe and reliable: SeABank is a reputable bank with a strong financial system, ensuring the safety of all guarantee transactions.
Use the payment guarantee service immediately with competitive fees at SeABank
Hopefully, you will better understand what a payment guarantee is through the information provided in today's article. In addition, if your business is looking for a reputable payment guarantee service provider, please contact SeABank immediately.
With a commitment to providing reliability, convenience and quality services, SeABank is a great choice for your business guarantee needs. To learn more about SeABank's payment guarantee service, please visit the website or contact Hotline 1900.599.952 (KHDN).
