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The Financial Security Guarantee (FSG) is:
- A 100 per cent irrevocable and unconditional guarantee to the bank;
- Payable only after the financial institution has made a simple demand on the exporter and the latter has not paid within 10 business days;
- Equivalent to the amount of the letter of guarantee for a one-year period;
- For supply contracts, limited to 25 per cent of the contract and/or three month’s supply;
- Restricted to offshore working capital facilities that are in place for operating purposes only and not exceeding USD 5 million.
Benefits to the Bank
- Guarantee is irrevocable and unconditional, protecting your investment;
- Frees up exporter’s working capital, enabling you to provide additional support to your customers.
Benefits to your Exporter
- Frees up working capital by foregoing the bank’s security requirements;
- Facilitates exporter’s foreign direct investment;
- Enables better access to vendor support and better terms of payment;
- Allows exporter to respond to more exporting opportunities.
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