If you do foreign trade business, by offering XacBank’s payment guarantee to your foreign business partners, you can minimize the payment risk, thus creating an opportunity for your business to receive more favorable conditions (e.g. deferred payment instead of prepayment).

Trade with foreign partners brings specific risks. In view of this, guarantees are an important instrument within international trade to ensure that services are performed. A guarantee in this context is an abstract, standalone promise independent of the underlying transaction to make a payment at the beneficiary's request.

Advantages: 

For contractor: 

• Strengthens the credibility of your business as seen by the counterpart;
• Ensures further effective cooperation with your counterpart as you will not have to commit your own money to secure the transaction;
• Expands customer’s commercial activities (participate in bids, receive orders for delivery of goods or services, etc.);
• Lowers your cost of funding.

For beneficiary: 

• Limits the risk of counterpart's default against contractual terms and conditions;
• Efficiently collects your receivables with the use of the guarantee;
• Increases security of trade transaction with your counterpart.