Benefits
Banker’s Guarantee compliant
As issuing bank of the BG, UOB will pay your beneficiary upon receipt of a compliant demand.
Standby Letter of Credit
An alternative guarantee instrument to support your contracts with suppliers/buyers.
Fees
For fees related to Trade Services, remittance fees and other service fees, please contact your nearest UOB China branch or you can call UOB China at 400 886 2821.
Click here to view Wholesale Banking Cash Management and Trade Finance Service Tariff.
Frequently asked questions
What is a Banker's Guarantee (BG)?
A BG is a definite undertaking by the bank (guarantor) to pay the beneficiary a certain sum of money within a specified period if the applicant (principal) fails to fulfil his contractual or other obligations of an underlying transaction.
What is a Standby Letter of Credit (SBLC)?
Like BG, SBLC is an independent payment obligation which is payable by Issuing Bank against beneficiary's compliant demand.
What is the difference between BG and SBLC?
BG may be subject to the International Chambers of Commerce (ICC) ’s Uniform Rules for Demand Guarantees (“URDG758”). SBLC may be subject to ICC's Uniform Customs & Practice for Documentary Credits (“UCP 600”), or International Standby Practices ("ISP98”). BG / SBLC may be subject to country law as well.
Who are the parties in a BG or SBLC?
There are generally the following parties in a BG / SBLC:
- Issuing Bank: Guarantor who will pay upon compliant demand, in accordance with format.
- Applicant: Party who is usually the Customer of the Bank applying for the guarantee, and who will pay the Issuing Bank in event of claim.
- Beneficiary: Party in whose favour a BG / SBLC is issued.
