Payment Guarantee

A written warranty issued by Bank of China, at the request of the Buyer to the Seller under the contract, guaranteeing the Buyer will fulfill the payment obligations under the contract to purchase goods, technology, patent or services.

Provide contract payment protection.

1. Mediate the issue of mutual mistrust between both parties of a transaction. Bank of China who has good reputation acts as a guarantor to promote smooth transaction by providing guarantee for the parties;
2. Guarantee fulfillment of contractual obligations;
3. Guarantee payment of contract price. Timely payment for goods is guaranteed with similar effect as L/C in merchandise trade;
4. Wide application scope. Not only for merchandise trade, but also for construction projects.

Buyers involved in sales contracts, Owners involved in engineering contracts (tender offers) and so on.

I. Application for letter of guarantee

1. The applicant fills out an application form for issuance of a letter of guarantee;

2. The applicant provides margin deposit or submits other counter-guarantee;

3. The applicant submits  copy of contract agreement or any supporting documents related to the contract;

4. The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China.
 

II. Examination and issuance of letter of guarantee

1. Bank of China examines the customer qualification, underlying transaction and relevant documents;

2. Bank of China confirms the customer's margin deposit or credit line and other mortgages;

3. Bank of China examines the written application and form of letter of guarantee;

4. Bank of China issues the letter of guarantee accordingly