I have been privy to a couple of business investment talks. Ideas and business plans then it will get to the point of BG and for one reason or the other it turns out to be a bottomless pit.

Is there anyone in the house who will be kind enough to educate me on how to process one? Closest to a BG that I've seen is an ATC (authority to collect) from a cement plant.

Contributions pls.

pacino26:
I have been privy to a couple of business investment talks. Ideas and business plans then it will get to the point of BG and for one reason or the other it turns out to be a bottomless pit.

Is there anyone in the house who will be kind enough to educate me on how to process one? Closest to a BG that I've seen is an ATC (authority to collect) from a cement plant.

Contributions pls.

Okay,

A bank guarantee is of different types.

Don't know how best to explain but I'll try;
The commonest of bank guarantee I have come across are Advanced payment Guarantee, Bid bond and insurance bond.

The Advanced Payment guarantee involves 3 parties; you (the contractor), the bank and the client(say govt or any other company).

Here, the client requests the contractor to obtain/get APG from a reputable bank sort of covering the contract value. Basically, the essence of the APG is for the client to hold the bank responsible in case of default in contract execution.

When the APG is given by the bank, the client pays straight into the contractors account, and the bank now releases the money to the contractor in piecemeal according to agreed percentage and level of work done.

For the Bid bond/guarantee, 3 parties are also involved.
Most companies will ask their bidders/contractors to secure a bid bond from their bankers before they are allowed to bid for any job or contract.
The reason is to make sure that the bidder has the capacity to perform such contract.

Please note also that these services by bank come with a charge.

If you have any job that require a bank guarantee, you can approach your bank and ask more question or pm me.

Bugatie:


Okay, I have.

A bank guarantee is of different types and most times people mistake them for other products offered by the bank like Bonds.

Will you be kind to educate me and possibly point me toward the right direction?

pacino26:


Will you be kind to educate me and possibly point me toward the right direction?

I explained a little above but just to ask, which bank do you have a business account with?

Bugatie:


I explained a little above but just to ask, which bank do you have a business account with?

Diamond bank. I sent you a p-mail. And I've worked with an APG on a construction project before that's with a state gov though.

Am looking forward to securing a one digit loan to set up something here in Nigeria and the funds are coming offshores.

pacino26:


Diamond bank. I sent you a p-mail. And I've worked with an APG on a construction project before that's with a state gov though.

Am looking forward to securing a one digit loan to set up something here in Nigeria and the funds are coming offshores.

OK good, Diamond bank is SME inclined and am sure they will give you a a favourable offer if you've had a good business relationship with them.

Just call your banks relationship manager/account officer or go to the nearest branch with your offer/award letter so you can discuss further.

I'll check my mail now.

ATC is hard to process these days