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CAPITAL YIELD AND BANKING SOLUTIONS

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Macroeconomy

It is the managing of economy around the world. We provide funds to B2A and B2B entities under investments and/or purchasing their assets.

TYPE
Bank Guarantee (BG) ICC-600 latest edition
Standby Letter of Credit (SBLC) ICC-600 latest edition
Bonds
MTN´s & others

BASIC DIFFERENCES BETWEEN THE CLASSIC ENDORSEMENT GUARANTEE AND THE INTERNATIONAL BANK GUARANTEE ICC-600-758 (LAST EDITION)

In conventional commerce, it is very common to confuse the traditional “endorsement guarantee” from classical banking with the “international bank guarantee” since, although in many cases reference is made to the URDG (Guarantees on first demand) or UCP (Universal rules for documentary credit) in the end everything is based and regulated by the International Chamber of Commerce, which is the main Authority. The first (classic bank guarantee) is normally used for the contracting party to provide a third party with a relatively quick economic capacity and willingness to respond to any liability that he may fail to fulfill in the future; This type of guarantee is normally requested because the contractor does not have sufficient cash to ensure certain future payments in the event of default. The second one, the International Bank Guarantee, is used in all financial markets and is generally used when the buyer and the seller do not know each other and there is no mutual trust, so that by not being able to unite their differences, the common limits in the obligations of the agreed payments and services are in jeopardy, there is always a risk of non-payment or non-fulfillment of the service; Thus, the International bank guarantee covers this space of uncertainty and ensures the fulfillment of the obligations of both parties. Below are the diferences:

CLASSIC ENDORSEMENT GUARANTEEBANK GUARANTEE ICC-600
Bank letter of payment on first demand for non-complianceBank letter for collateral use only
For its issuance, more than 300% in real physical guarantee is normally requiredPledging cost is about 10% of face value
Counter-guarantee required: Money and properties that can be mortgaged on first demand, it is not immediate since there is an administrative process involved, and sometimes even judicial. The issuer / holder of the guarantee is liable to the beneficiary / receiver for all contractual obligations arising from non-compliance. If fraud or bad faith is shown then the responsibilities could be attributable to individuals / administratorsCounter-guarantee not required, it is only necessary to pay the annual domain. In case of execution, the person who responds is the one who has the domain of the guarantee, even if it is temporary (the beneficiary or receiver), therefore the receiver always has full responsibility for the correct custody of the bank guarantee through their securities account and also they have the obligation to return it back to the owner / holder before its expiration, completely free of any charges or encumbrances
Responsibility: non-transferable, indivisible, revocableTransferable, divisible and irrevocable to authorized solvent Corporations
For one year, renewable. The person responsible for the possible breach and execution of the guarantee is the contractor / applicantFor one year and one day, renewable. The person responsible for the possible breach and execution of the guarantee is the beneficiary / receiver
It is a product of the issuing Bank and they make money with it. A viable project is required and audited by the issuing Bank.It is not a product of the issuing Bank since they do not earn almost nothing, they only charge for the Swift service or similar, that is why issuing Bank is not interested in this type of guarantee. On many occasions, even the Bank’s Executives themselves do not know them and come to think that it is a fraud, on other occasions they confuse them with the classic endorsement guarantee. Project not required if client operates through an authorized Corporation
The issuer is the Bank and the coverage is local / national for a specific use onlyThe issuer is a legally authorized Corporation and the Bank is basically the messenger. The coverage is national / international and free for commercial use, as long as the objective is collateral, that is, for financing, the money cannot be used directly for self-financing or to request any support under solicitation
Any additional questions or verification that you wish to make, please contact qualified professionals in international trade jurisdiction or free trade directly to the ICC

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PC 28046, Madrid
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EU Registration: (ES) N4682033H · Copyright © 2023 · All rights reserved.

VERUM INVESTMENTS INC. is the leading company in for-profit investments that always respects and maintains fair market values both for buying/selling and for investment.

Transactions are only carried out when the seller or entrepreneur provides an international collateral guarantee; this is the only condition.

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