dbs-bankers-guarantee

Banker’s Guarantee / Standby Letter
of Credit

Provide payment assurance to strengthen partnerships
and grow your business.

Banker’s Guarantee / Standby Letter
of Credit

Provide payment assurance to strengthen partnerships
and grow your business.

    At a Glance

    Reassure your buyers or sellers that payment obligations will be met. Banker’s Guarantee helps build trust to facilitate and secure transactions.

    Banker’s Guarantee (BG)

    An undertaking from DBS to pay your beneficiary if a claim is made in accordance with the terms of the guarantee. Commonly used for lease agreements, contract agreements, project tenders or government-related requirements.

    Standby Letter of Credit (SBLC)

    A form of payment commitment used in domestic and cross-border transactions, where payment is made upon presentation of the documents or demand specified in the SBLC. Commonly used to support trade, performance or financial obligations between buyers and sellers.

    Features & Benefits
    Strengthen business credibility with payment assurance

    Strengthen business credibility with payment assurance

    Give your business partners the confidence that payments and contractual obligations will be met, helping you secure deals and deepen business partnerships. 

    Quick issuance with cash — no extra setup needed

    Quick issuance with cash — no extra setup needed

    Need to move fast? You can issue a BG or SBLC against cash margin.

    Leverage DBS’ strong credit rating

    Leverage DBS’ strong credit rating

    Enhance trust with your counterparties by offering a guarantee backed by DBS’ strong credit rating

    Simple online application process

    Simple online application process

    Skip the paperwork. Apply online through DBS IDEAL 

    Fees

    Please refer to the Trade Pricing Guide.

     

    How to Apply

    With DBS IDEAL Trade Finance

    Apply via DBS IDEAL

    Log in to DBS IDEAL. From the left menu, select ‘Trade Finance’, then click on ‘Issue new Banker’s Guarantee’. Refer to the Banker’s Guarantee Application Guide for a step-by-step overview.  

    Without DBS IDEAL Trade Finance 

    Apply for Trade Finance access using DBS IDEAL Online Maintenance Form to enjoy seamless application. 

    Alternatively, you can also submit your Trade Application Form at our Trade Document Counters or collection branches 

    FAQs
    How to obtain a banker’s guarantee?

    (1) Application: Submit your application to DBS  
    (2) Issuance: Choose how you want the BG/SBLC to be delivered  

    • Courier hard copy to you or your beneficiary  
    • Self-collection at our Trade Document Counters or Collection Branches 
    • Send instructions for delivery to the Beneficiary’s Advising Bank  
    • For eGuarantee (Singapore only), the guarantee will be delivered to the beneficiary via the Networked Trade Platform. Find out more about eGuarantee@Gov.
    How do I fill out the application form?

    You may refer to the following explanatory notes for guidance:  
    How can I monitor the status of my application?

    If you apply via DBS IDEAL Trade Finance, you can easily track the status of your application in real-time. 
    Does DBS provide standard formats?

    Yes, you can refer to the standard formats for commonly used BG and Standby LC below. Alternatively, you can request the beneficiary to provide a specific format. 
    How can I issue a guarantee against a cash margin?

    Submit the application form and select the cash account where the full amount of the guarantee will be debited from. This cash will be used to secure the guarantee. Once the guarantee is discharged, the full amount, minus any claims and charges (if any) , will be returned to you.
    What are the common uses of a Banker’s Guarantee (BG) or Standby Letter of Credit (SBLC)?

    BG/SBLC can be required in various situations. Some common uses are as follows: 

    • Payment Guarantee
      Protects the beneficiary if the applicant fails to honour the payment under their contract. 
    • Bid Bond
      Enables the applicant (bidder) to use DBS credit to support the bid. Bid bond provides assurance to the beneficiary that the bidder will honour the bid and enter into the contract if awarded.  
    • Performance Bond
      This guarantees that the applicant will perform according to the contract obligations  
    Get in Touch
    Contact DBS BusinessCare

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