₦airaland Forum

Good day

I intend to go into supply of Agric products but I need bank guarantee from banks.

The supply is mainly within nigeria and I would appreciate if experienced business men /women in the house throw more light on this for me.

Thanks in advance

Is it a contract between government or private individual cos to get bank to guarantee, some things are considered and put in place

rammyty:
Is it a contract between government or private individual cos to get bank to guarantee, some things are considered and put in place

What are the things to be considered? Can any1 guide me?

Bank Guarantee is a way projects are been monitored. The bank holds the funds for the transaction and releases to you in batches depending on the trenches of the transaction. And once you have done one trench, and it has been certified okay and delivered, you get the next payment.

To get a BG, you need to walk upto your bank with the contract agreement and show them everything. They would issue you a BG after they may have gotten approval from the bank Management and you would be charged for the BG. Most times the Bank may ask for collateral if the money to the guaranteed is very high, but if not you can use domicilation of the trenches of payment as your collateral