Here’s What People in Thailand Should Know about Financial Guarantees

 Every business owner may face a situation when they can’t take forward their business due to the lack of finances. Well, in this respect, the financial guarantee can give the best solution. In Thailand, you will find many NBFCs (Non-Banking Financial Company) that are offering financial guarantees these days.

Now, you are thinking about grabbing this opportunity, right? Prior to that, you must have a clear understanding of this term. So, before you opt for financial guarantees in Thailand, read the entire article.

Financial Guarantees in Thailand

What Is Financial Guarantee?

A financial guarantee is nothing but a contract given by financial institutions. With its help, an individual or a company can repay their debts. It can assure you to pay your debts when you are not able to do.

How Financial Guarantees Work?

For example, company X has several subsidiaries. And company A is one of them. However, company A wants to build a manufacturing facility. Hence, it needs funds and takes out a loan from an NBFC. In this situation, the lending institution will ask company X to guarantee the loan if company A can’t meet the obligation. Then the parent company i.e. company X assures to repay the loan.

Sometimes, the guarantee involves multiple companies. In this case, each guarantor is responsible for a proposed share. Or they may take each other’s responsibility to repay the amount.

Why Financial Guarantees Are Used

Financial guarantees are quite useful for lenders to attract investors. They feel more comfortable to know that the lender can repay the loan if the borrower defaults. Financial guarantees are the less expensive option for lenders to do business. It’s because, with its help, they can earn credit rating and low-interest rates.

Now, let’s know why you should contact an NBFC in this respect.

Why Contact An NBFC Regarding Financial Guarantees?

If you are involved in international business, you should contact a trusted NBFC. It’s because they accept multiple currencies from the traders.

The NBFCs always keep their clients updated about the dealing. They send an electronic message for each update.

The NBFCs accept one-time payment from their clients. It’s a great advantage that you can facilitate from an NBFC.

A Trusted NBFC to Contact

You can contact Merchant Trade Guarantee Corporation Company Limited, a trusted NBFC. They are dealing with many clients regarding financial guarantees in Thailand. They aim to maintain a cordial relationship with their clients. Visit merchanttradecorp.com to know more.

Comments

Post a Comment

Popular posts from this blog

A basic knowledge of Import Letter of Credit in Thailand

Image
Letters of credit are a secure way of paying for goods in international trade. There is a concern between buyers and sellers in imports and exports as they are located in different countries. The buyer is afraid that the product will be misunderstood and the seller is afraid that the product will be priced. In this case, the letter of credit is the means by which the seller pays the price through the bank and guarantees the correct delivery of the goods to the buyer. Well, LC benefits both the importers and exporters, and today we will discuss on Import Letter of Credit in Thailand . Are you curious? Import letter of Credit is commonly used in international trade transactions, whereby the Issuing Bank promises to pay the Exporter. Yes, a letter of credit is mainly a kind of guarantee given by a bank through which the fidelity between the importer and the exporter is gained and they are assured that the seller will get the price of his product and the buyer is also assured tha...
Read more

An Informative Discussion On Bank Guarantees in Thailand With Example

Image
It might seem a challenging task to enhance your business in the cut-throat business world of Thailand. Stop worrying now about increasing the earning, and opt for the bank guarantees in Thailand . It is a helpful means of purchasing goods from an unknown party. In the continuing lines of today’s article, we have tried to provide you with comprehensive knowledge on it. Continue reading. What do the bank guarantees mean? Let’s keep the thing simple. It is nothing but a legal promise. This document is all about demonstrating that a person comes with sufficient funds usable for the business transactions. Bank guarantees are available in bank or custody statements form. Commercial banks or NBFCs give these guarantees to the people remain involved in the transactions.  A significant fact of this guarantee is, this will be valid for a certain period. After crossing it, this document will be nothing more than a useless paper. Bank guarantees, available in two forms, come with a baggage of...
Read more

Performance Guarantees give the contract employer confidence-Is it true?

Image
A Performance Guarantee is a contractor’s commitment to finish the project. To be more specific, a Performance Guarantee is a chronicle that legally verifies that you, the contractor, will execute the contract you have undertaken. However, if you are a newcomer in the world of business, you can go for Performance Guarantees in Thailand . Now, you are definitely interested in knowing about this financial tool. Well, this piece of writing has discussed this topic. So, go through the entire content attentively.  What is Performance Guaranty in Thailand? Performance Guarantees give the contract employer confidence that they will meet their projected deadlines and have their contracts ended. If the contractor cannot set up the construction according to the disclaimer layout by the contract, the client is guaranteed compensation for any financial losses up to the amount of the performance bond. To learn more about the benefits of performance guarantee in Thailand, read the following pa...
Read more