Receiving a Bank Guarantee

Receiving a Bank Guarantee

In order to receive a bank guarantee, your company must bank with an internationally acceptable institution that is part of the swift communication system.

If the Receiving Bank has received a swift MT 799 pre-advice, informing them that a Bank Guarantee is about to be transferred, they will advise the beneficiary.

Upon actual receipt of the MT 760, the bank will credit a separate account in the beneficiaries name, usually an electronic safe custody or keeping account. The Beneficiary will then receive a print-out of the swift message as proof of receipt.

The client or Beneficiary is now free to use the Guarantee for the intended purpose and if being utilised for monetisation, the LTV (Loan to Value), will need to have already been previously agreed with their bankers.

It is important to note, if a company intends to enter into a contract where they will receive a Guarantee, they must bank with an internationally acceptable institution that is part of the swift communication system.