Other Trade Products

Banker’s Guarantee/Standby Letter of Credit

Provide payment assurance to your beneficiaries

Leverage DBS’ AA- and Aa1 credit rating to assure your beneficiaries of payment with DBS Banker’s Guarantee/Standby Letter of Credit.

 

Why choose DBS Banker’s Guarantee/Standby Letter of Credit?

  • Grow your business with the Best Trade Finance Bank in Singapore, as named by Alpha Southeast Asia and The Asia Banker in 2012. We also received this accolade from Global Finance in 2012, for the 8th consecutive year
  • Leverage DBS Bank’s AA- and Aa1 credit rating to provide your beneficiary with payment assurance upon receipt of claims according to the Guarantee terms
  • Submit your application through any DBS or POSB branch, or IDEAL™ (our online banking platform) for greater convenience
  • Collect your Banker’s Guarantee from any of our ten conveniently located Trade Document Counters and DBS collection branches

Product Details


  • A Banker’s Guarantee/Standby Letter of Credit can be used as a:
      • Payment Guarantee – This protects the beneficiary in the event that the applicant fails to honour the payment under their contract
      • Bid Bond – This enables the applicant (bidder) to use DBS’ credit to support the bid, and can also be used to insure the successful bidder that the contract will be met
      • Performance Bond – Some bidding contracts require the successful bidder to provide a Performance Guarantee to protect against a default
      • Financial Guarantee – This helps the applicant’s overseas subsidiaries obtain financing or credit facilities from banks
  • The Guarantee can be issued by DBS Singapore or by our overseas branches / correspondents, according to the Guarantee format provided by the applicant
  • Guarantees issued in favour of beneficiaries must be for a specific amount, expiry date and claim period
  • Guarantees should not be assigned to other parties
  • Guarantees are subject to Singapore law and the jurisdiction of the Singapore courts

Item

Pricing

Issuance(Direct)

Financial Guarantee: 2% p.a.
Performance Guarantee:
1% p.a. up to 2 years
1.5% p.a. above 2 years

Min commission:
S$100 (Standard format)
S$200 (Non-Standard format)

Issuance(Indirect)

Subject to quotation
Min commission:
US$500 (Standard format)
US$1000 upwards (Non-Standard format) depending on complexity,
plus overseas bank issuance charges

Issuance (against Incoming Counter Guarantee/Counter Standby)

Subject to quotation

Issuance of Letter of Confirmation for Standby LC

Subject to arrangement

Amendment

 

– Tenure

Same as issuance commission, min SGD 100

– Amount

Same as issuance commission, min SGD 100

– Others

SGD 80

BG/SBLC Advising

DBS account holder: SGD 30
Non-DBS account holder: SGD 60

Authentication of hardcopy BG(issued by other bank)

S$200 flat

Handling of Inward Claims under BG/SBLC

S$200 flat

Handling of Inward Claims under BG/SBLC (Pay or Extend)

Same as Issuance Commission, subject min S$200

Collection Service

 

– Presentation of Demand & Documents under BG/SBLC (issued by other banks)

1/8% flat, min S$200

– Signature verification (only without collection service)

S$200 flat per document

Request for Transfer /Acknowledgement of Notice of Assignment or Transfer

Subject to arrangement (Min 0.25%, but not less than S$500)

Miscellaneous Fees

Vetting fee, cancellation fee, handling outward claims, handling of assignments, Certified true copy and Re-Issue of Guarantee (incorporating amendments) where applicable at a min of SGD 200

Others

Tracer Fees S$10, Postage S$2, Courier S$10 (local) min S$25 upwards (overseas)

Processing fee under advance payment arrangement**

S$100

FAQs

How do I complete the Banker’s Guarantee/Standby Letter of Credit application form?

Please refer to the comprehensive explanatory notes provided on this page, under the header “Forms” or call our Banker’s Guarantee officers at 1800 222 2200.

Where do I find a Banker’s Guarantee/Standby Letter of Credit format?

The standard formats for commonly used Banker’s Guarantee/Standby Letter of Credit are provided on this page, under the header “Forms”. Alternatively, you may ask the beneficiary of the Banker’s Guarantee/Standby Letter of Credit to provide a format.

How long does it take to process a Banker’s Guarantee/Standby Letter of Credit?

We can process your Banker’s Guarantee/Standby Letter of Credit within 24 hours upon receipt of a complete application using DBS standard format, subjected to the availability of your credit facility.

Where do I collect my Banker’s Guarantee/Standby Letter of Credit?

You may collect it from any of our Trade Document Counters or collection branches. Our five trade counters at Marina Bay Financial Centre, Towner and Jurong Gateway (Toh Guan) while our five collection branches at Buona Vista, Tai Seng, Jurong Point, Telepark and Woodlands.

Awards

Awards we have won recently
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2013
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2013
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2012
View All

 

How do I apply?

Simply submit your application form and a copy of the Guarantee format to any of our Trade Document Counters or DBS branches. Alternatively, you can apply via IDEAL™.