Documentary Credit Guarantees

Platinum Wealth Trade Finance can source and structure documentary credit guarantees to enable exporters to rely on their bank for payment for their goods or services, rather than their overseas buyer’s bank.
 
This may be the case if the exporter’s bank is unwilling to take the risk on the buyer’s bank for payments due to the exporter under a documentary letter of credit.  

In these circumstances, Platinum Wealth Trade Finance may be able to organise a guarantee of the obligations of the buyer’s bank under the letter of credit to the exporter’s bank.
 
A documentary credit guarantee can:

• Secure payment under the documentary credit issued by the buyer’s bank

• Enable the exporter’s bank to confirm that it will make payments to the exporter

• Help protect the exporter’s revenue and finance the export activity

• Provide increased confidence that if the exporter provides its bank with the documents required the exporter receives the payments owed under the export contract.

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Export Finance Guarantees

Similar to a direct loan, export finance guarantees can be provided to corporates, project companies or governments.  

They can help an overseas buyer to finance the purchase of capital goods and services from an exporter.  

They can also be used in financing domestic export-related transactions.
 
Guarantees can be provided to support either buyer credit to offshore corporates or governments purchasing goods or services, or project loans where the project is a buyer of goods or services.   
 
Under an export finance guarantee facility, a commercial bank or other financial institution enters into a loan agreement with the buyer (or borrower on behalf of the buyer) of the goods or services.  We provide a guarantee to the bank in respect of the payment obligations under the loan.
 
Platinum Wealth Trade Finance sources and structures export finance guarantees.