Wolfgang zulauf
Chief Executive Officer, SUISSE BANK
There are several risks involved when trading beyond the boundaries of your country – payment being one of the primary risks. Most exporters or contractors would want at least 75% of the payment to be done in advance before they can ship the merchandise. This helps secure the supplier’s payments even if the buyer or importer becomes insolvent. However, for small-and-medium businesses, securing huge capital even before receiving the merchandise can be challenging.
A bank guarantee issued by a financial institution can help mitigate these risks – providing a written undertaking that in case the client (importer or exporter) is unable to meet certain obligations as mentioned in the trade agreement, the financial institution will make the stipulated payment to the beneficiary on behalf of the client. However, it can be tricky to decide if a bank guarantee is the right option for your business. In that case, you need an expert consultant like Wolfgang Zulauf. He is an expert in the field of offshore banking, investments and financing and the CEO of SUISSE Bank, a leading overseas banking institution. Through the bank, he provides a wide range of bank guarantees, including:
Without a bank guarantee, many businesses will not be willing to trade with you. Securing the right type of guarantee can give your business a good financial standing and trade internationally in an independent and risk-free manner. In addition to a payment guarantee given to the supplier or exporter, a bank guarantee is also useful in ensuring that the importer receives the goods on time and as per the terms mentioned in the agreement. If the exporter fails to meet the obligations, the financial institution will ensure that the losses are covered. However, in most cases, it is used as a payment or advance payment guarantee. Having bank guarantees also enables your business to leverage lucrative trading opportunities, both locally and internationally. The financial soundness of the bank is passed on to the client, helping establish faith and trust. However, you should consult with a banking and trading expert like Wolfgang Zulauf to understand how a bank guarantee can help your business.
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AuthorWolfgang Zulauf has long-term experience in financial business, especially in the banking industry. He has worked in many countries in Europe over the Middle East to Asia. Archives
February 2022
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