LETTER OF CREDIT

LC’s are used in international transactions to ensure that payment will be received where the buyer and seller may not know each other and are operating in different countries.

We deal with two types of Letters of Credit:

AT SIGN
USANCE

Payable immediately – within five to ten days – after the seller meets the requirements of the letter of credit.

Also known as Deferred Payment LC or Time LC or Term LC is a letter of credit payable at a predetermined time / future date after the conforming documents are presented.

  • Applicant sends us the pro-forma/sales invoice.
  • GAG will create a draft instrument and send a quote to you stating our charges (to be paid in advance).
  • Once the draft has been accepted, an indemnity with be sent to you (KYC/AML/due diligence) documents which need to be signed and notarized by a lawyer.
  • We also send you a formal invoice for our indemnity process and issuance charges.
  • Once our invoice has been paid, along with all indemnity documents, subject to legal and compliance acceptance, we will SWIFT the instrument to the beneficiary’s bank.
  • Escrow account facilities with a UK third party are also available to assist in settlement of invoices, and we request for a commitment fee along with Escrow administration charges.
  • The beneficiary sends the goods to you and the documents to us.
  • Once documents have arrived, we have three business days to act on it, after which, if formally accepted, we send you a copy of the documents.
  • Upon acceptance of the documents, you will be required to pay the beneficiary. When completed, we send you all the original documents.
  • Goods arrive.

STANDBY LETTER OF CREDIT

A standby letter of credit (SBLC) is a guarantee of payment issued by a bank on behalf of a client that is used as « payment of last resort » should the client fail to fulfill a contractual commitment with a third party.

Standby letters of credit are created as a sign of good faith in business transactions and are proof of a buyers’ credit quality and repayment abilities.

The institution issuing the SBLC performs compliance and brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then sends notification to the bank of the party requesting the letter of credit (typically a seller or creditor).

Importantly, when requesting a SBLC, a business owner proves to the bank he is capable of repaying the loan. Collateral such as promissory notes, post-dated cheques and Escrow deposits will be required to protect the bank in case of default. The business owner must pay a SBLC fee for each year that the letter is valid. The negotiable fee is typically 5-10% of the SBLC value.

Complete Your Application Process In 6 Easy Steps

  • Applicant sends us underlying contract (Ex: Sales Contract / pro-forma invoice).
  • GAG will create a draft instrument and send a quote with our charges (to be paid in advance).
  • Once the draft has been accepted, we send the indemnity (KYC/AML/due diligence) documents which need to be signed and notarised by a lawyer.
  • We also send you a formal invoice for our indemnity process and issuance charges.
  • Once we receive our charges and all DD checks are completed and approved, along with all indemnity documents, we will SWIFT the instrument to the beneficiary’s bank immediately.
  • Beneficiary is paid at least 14 days before the expiry date (Up to 2 years from SBLC issue date).

BANK GUARANTEE

What is Bank Guarantee?

A bank guarantee is a lending institution’s promise to cover a loss if a borrower (their customer) defaults on a debt to a third party.

Complete Your Application Process In 6 Easy Steps

Exclusively issued by our Banks partners

The guarantee lets a company buy what it otherwise could not, thereby helping business growth and promoting entrepreneurial activity.

Whilst these guarantees can come in various forms Group Alliance Gulf,Co.,LTD specialises in performance and financial guarantees only, which are exclusively not cash backed.

Types of Bank Guarantee we work whit

  • Advance Payment Guarantee.
  • Bid Bond Guarantee
  • Deferred Payment Guarantee
  • Financial Guarantee
  • Foreign Bank Guarantee
  • Performance Guarantee

Application Procedure

  • GAG receives underlying relationship contracts (Ex: Sales Contract / pro-forma invoice).
  • GAG creates the first draft BG and send quote to you, stating the Bank’s charges within 3 working days.
  • Once the draft has been accepted, we send the indemnity documents which must be signed and notarized by an appropriate legal representative.
  • GAG send you formal invoices for our indemnity process and issuance charges.
  • Once invoices are paid and all indemnity documents are received, subject to legal and compliance acceptance, we will SWIFT the instrument to the beneficiary’s bank.
  • Applicant pays the beneficiary at least 14 days before the expiry date.

Tender Guarantee

A Tender Guarantee is issued by the Bank at the request of the Tenderee, for bids of construction or procurement of projects, committing that the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee once the bid is won.

Application Procedure

  • The applicant fills out an application form or a contract for issuance of a letter of guarantee and tenders same to the bank along with the specimen guarantee format required by the beneficiary.
  • The applicant pays margin as per the banks requirement.
  • Examination and issuance of letter of guarantee if as per the banks tender guarantee format.
  • If the format defers from the banks guarantee format same could be referred for legal advice.
  • If covered by 100 % cash margin, our Bank partner may issue the guarantee after obtaining sanctions from the credit authority
  • Upon customer qualification, underlying transaction and relevant documents our Bank confirms the customer’s margin or credit line and other mortgages
  • Or Bank partner issues the letter of guarantee

PROOF OF FUNDS

DISCLAIMER

GROUP ALLIANCE GULF. CO.,LTD is a Group of Companies with Registered Office in Cameroon and a Representative Office in Ghana.

GROUP ALLIANCE GULF. CO.,LTD (REGISTERED OFFICE) is a Class A International Business and Commodity trading institution incorporated under the laws of Ghana. The license provides authorisation to conduct business with third parties across industries and geographies worldwide.

GROUP ALLIANCE GULF. CO.,LTD (REPRESENTATIVE OFFICE) is a company incorporated under the laws of Ghana with company registration number ??????. This entity is a non-banking financial institution that facilitates international business transactions through issuance and relay of various trade finance instruments. The Ghana-based Representative Office cover Letters of Credit and Standby Letters of Credit to corporate clients only. This office does not provide regulated or controlled services or activities.

Important Notice: GROUP ALLIANCE GULF. CO.,LTD would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services of the Bank or any intermediary bearing similar names. You should verify with GROUP ALLIANCE GULF. CO.,LTD by calling the office Customer Service Number on +237658750434 or emailing info@group-alliancegulf.com. Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of GROUP ALLIANCE GULF. CO.,LTD.