In the current tough market, most of the banks are asking for cash margin up to 100% to issue tender bond, advance payment guarantee and performance bond guarantee. These guarantees are must for contracting company to comply with tender and contract's terms and conditions.
It is the most important to Finance Manager to negotiate for minimum cash margin to ensure that cash are available for execution of project and at the same time, it is also important to keep the bank guarantee issuing cost to the minimum. The issuing cost of guarantees increases dramatically when cash margin kept by company is borrowed from bank as company has to pay interest on borrowed money while the cash has been blocked by bank as security.
Krystal Financial Consultants assists company by arranging tender bond, advance payment bond, performance bond without any cash margin or assets collateral in local currency and any country.