Bank Instrument Provider: Guarantee, Letter of Credit & Proof of Funds

Bank Instrument Provider: Guarantee, Letter Of Credit And Proof Of Funds

Bank Instrument Provider: Guarantee, Letter Of Credit And Proof Of Funds

We arrange guarantees, letters of credit, and proof-of-funds letters that counterparties accept and banks will issue. Texts are drafted for enforceability, issued by credible banks, and delivered in the format the beneficiary requires. Our team handles structure, wording, bank route, Society for Worldwide Interbank Financial Telecommunication mapping, reimbursement paths, and post-issuance support. Engagement with banks, funds, and insurers is chaperoned from first contact to issuance or first draw.
Who We Serve
Exporters and importers, commodity traders, manufacturers, distributors, engineering procurement and construction contractors, project sponsors, and large buyers with strict procurement rules.
Rule Sets And Standards
Uniform Rules for Demand Guarantees Publication Number 758, Uniform Customs and Practice for Documentary Credits Publication Number 600, International Standby Practices Publication Number 98. Clear Society for Worldwide Interbank Financial Telecommunication message mapping for issuance and reimbursement.
Corridors
Organisation for Economic Co-operation and Development markets and frontier routes where custody, sanctions, and legal enforceability can be verified.

What We Provide And When To Use Each Instrument

Instrument Purpose And When It Fits Delivery Format
Demand Guarantee(URDG 758) On-demand protection for bid, performance, advance payment refund, retention, warranty, or rent and capacity obligations. Use when the buyer needs a simple claim path if the seller fails to perform. SWIFT MT760; local hard copy on bank letterhead; approved e-guarantee platform; indirect form via counter-guarantee to a local bank when domestic issuance is required.
Documentary Letter Of Credit(UCP 600) Assured payment to the seller on compliant presentation. Sight, usance, or Usance Payable At Sight. Add confirmation where issuer or country risk sits outside policy. SWIFT MT700 or MT710 for issuance and advice; MT742 for reimbursement; amendments via MT707; discounting agreement documented with the confirming or discounting bank.
Standby Letter Of Credit(ISP98) On-demand support for payment or performance. Often used in place of a guarantee where the beneficiary prefers ISP98 wording and banking practice. SWIFT MT760 for issuance; MT767 for amendments; clear draw statement and expiry rules in the text.
Proof Of Funds / Bank Comfort Letter Bank letter confirming account status, available balances, or financing capacity for bona fide transactions. Use for tender prequalification, landlord comfort, or pre-issuance checks. It is not a payment instrument and does not transfer funds. Bank letter on letterhead with signatories; SWIFT MT799 or MT199 for authenticated bank-to-bank messaging when the counterparty requests that channel; email from bank domain for domestic cases where this is accepted.

Clear Definitions So There Is No Confusion

  • Demand Guarantee. An independent, irrevocable undertaking by a bank to pay the beneficiary up to a stated amount against a compliant demand presented before expiry. Separate from the commercial contract.
  • Documentary Letter Of Credit. A bank undertaking to honour payment when documents conform. Control sits in the document set, not in performance tests outside the bank’s remit.
  • Standby Letter Of Credit. An independent undertaking payable on demand upon presentation of the specified statement and any supporting documents named in the text.
  • Proof Of Funds Or Bank Comfort Letter. A statement by a bank about balances or capacity. It does not block funds, does not act as collateral by itself, and should never be marketed as cash-like.

Formats, Delivery, And Bank-To-Bank Communication

SWIFT Delivery
  • Issuance and advice over SWIFT once RMA permissions are in place.
  • MT700 or MT710 for documentary credits; MT760 for guarantees and standbys; MT742 for reimbursement; MT707 or MT767 for amendments; MT799 or MT199 for authenticated free-format notices where appropriate.
  • We confirm beneficiary acceptance of the delivery method before issuance.
Local And Electronic Forms
  • Local hard copy on bank letterhead with wet signatures when domestic law or the beneficiary requires it.
  • Approved e-guarantee platforms in markets that mandate electronic form.
  • Indirect issuance with a counter-guarantee to a domestic bank where the beneficiary only accepts a local issuer.

Our Process From Mandate To Issuance

  1. Assessment. Review the commercial contract, Incoterms, logistics, and insurance. Sanctions, know-your-customer, and beneficial ownership checks on all parties. If the trade is not real, we close the file.
  2. Structure. Choose between guarantee, standby, documentary credit, or a comfort letter with soft-probe consent where bank-to-bank verification is expected.
  3. Drafting. Prepare full text under URDG 758, UCP 600, or ISP98 with precise draw language, expiry, place of presentation, and named certificate issuers where practical.
  4. Bank Route. Select issuing bank and, if required, confirming or fronting bank. Set SWIFT message path for issuance and reimbursement and agree advising fees and value dates.
  5. Beneficiary Pre-Acceptance. Obtain written acceptance of the draft form and delivery method to prevent post-issuance disputes.
  6. Issuance And Support. Deliver the instrument, manage amendments, track acceptance or maturity where relevant, and support presentation or claim if needed.

Pricing, Collateral, And Tenor

  • Pricing Drivers. Issuer rating, country risk, tenor, currency, document complexity, transferability, and confirmation capacity. Fees for advising, SWIFT, platforms, and courier apply where relevant.
  • Collateral. Cash margin or security package based on credit assessment. Where cash is tight, we arrange a facility to fund margin subject to approval.
  • Tenor. From tender validity through multi-year performance periods. Expiry language is fixed and free of ambiguity.

Eligibility And Documents To Begin

Eligibility
  • Verifiable contract, tender, lease, or framework agreement with defined obligations.
  • Directors and beneficial owners available for know-your-customer and sanctions screening.
  • Willingness to assign proceeds and accept reasonable controls where needed.
  • Transactions compliant with law and sanctions. No paper trading and no crypto assets.
Documents
  • Underlying contract or tender documents with technical scope and milestones.
  • Beneficiary requirements or preferred wording, if provided.
  • Corporate documents, group structure, recent financial statements, and twelve months of bank statements.
  • Jurisdiction and law preferences. Any platform mandates for e-guarantees.

Compliance Guardrails And What We Do Not Offer

  • Proof-of-funds and comfort letters are for genuine commercial needs. They do not transfer cash and cannot be “monetised.”
  • No “leased” standby credits or guarantees. No blocked-funds games. No paper programs that exist only on documents.
  • All services are subject to full sanctions screening, know-your-customer, and approvals by issuing banks and any confirming banks.

Frequently Asked Questions

Is A Standby Letter Of Credit Different From A Demand Guarantee
Both are independent undertakings. Standby credits follow ISP98 in most cross-border cases. Demand guarantees follow URDG 758 and are common in procurement and projects. Choice depends on beneficiary preference, jurisdiction, and bank limits.
Can You Arrange A Local Guarantee Backed By A Foreign Bank
Yes. We structure an indirect guarantee. A domestic bank issues the local form to the beneficiary against a counter-guarantee sent by SWIFT from the applicant’s bank.
What Is A Soft Probe And When Is It Used
With your consent, the issuing bank may send an authenticated message to the beneficiary’s bank to confirm specifics such as account status or readiness to issue. This is usually sent via MT799 or MT199. It is a verification step and not a commitment to pay.
What Triggers Payment Under A Guarantee Or Standby
A compliant demand presented before expiry at the stated place with the exact declaration and any supporting documents named in the text. We draft language that is objective and workable.

Request Bank Instrument Arranging Support

Share the contract or tender, the beneficiary requirements, and the target issuance window. We will return with the issuing route, draft wording, and an execution plan to issuance or first draw.

Start Structured Commodity Finance

This page addresses corporate users. Nothing here is a commitment to lend, issue, or insure. All services are subject to know-your-customer checks, anti-money-laundering controls, sanctions compliance, and approvals by banks and, where relevant, insurers. We work on a best-efforts basis and all counterparty communications are chaperoned.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.