Cash-Backed Bank Guarantee

Apply for a bank guarantee

Why you will love this
For customers with

Why you will love this

Simple online application

Select from popular beneficiaries like HDB, MOM and SG Customs

Fast issuance

For customers with

Existing OCBC SGD Business Account holders (open an account now if you do not have one)

OCBC Velocity standard or classic package

Get started

Cash-Backed Bank Guarantee explained

A Cash-Backed Bank Guarantee assures your customers so you can secure new contracts and expand your business. All you need to support your application is a cash margin from your OCBC Business Account.

Features and benefits

Time saved

Forget branch visits or having to wait for calls. Simply apply online.

No additional set-up needed

The bank guarantee is issued against the cash margin from your chosen OCBC Business Account.

Pre-filled application

Fields will be populated for your convenience. Just review and provide any details required before submitting!

How to apply

With OCBC Velocity
Without OCBC Velocity

1

Log in to OCBC Velocity > Trade Finance > Cash Backed Bank Guarantee.

2

Select from the list of beneficiaries (HDB, SG Customs and Ministry of Manpower) or choose Other Beneficiary.

3

Complete and submit the application.

If you have the OCBC Velocity Basic Service Package, you will need to upgrade to a Standard or Classic service package.

Log in to OCBC Velocity to apply now.

Apply for OCBC Velocity to speed up your application.

We recommend that you submit your application through OCBC Velocity where possible. Otherwise, please use this form.

Please complete and email the form to BusinessBG@ocbc.com. We will contact you within 1 working day.

Fees and charges

Refer to Banker’s Guarantee and Standby Letter of Credit Pricing Guide

FAQs

Common questions

Do I need a trade facility or limit to apply for a Cash-Backed Bank Guarantee?

No, you do not require a trade facility or limit to apply. The bank guarantee will be issued against a 100% cash margin to be debited from your designated OCBC Business Account.

How much cash must I have to apply for a Cash-Backed Bank Guarantee?

The Cash-Backed Bank Guarantee is issued against a 100% cash margin. This will be held in the same currency and amount as the bank guarantee. If the designated account for debiting is not in the same currency as the bank guarantee, OCBC will apply the prevailing exchange rate. For example, if you have an SGD debiting account and wish to issue a US$10,000 guarantee, you will need to have S$13,500 for debiting if the prevailing exchange rate is US$1:S$1.35.

When applying for a Cash-Backed Bank Guarantee in foreign currency, what do I need to know?

There are foreign exchange risks where the currency of the debiting account differs from the currency of the bank guarantee. If there are no claims, refund of cash margin will be based on the bank’s prevailing exchange rate. As foreign currencies are subject to inherent exchange rate fluctuation risk, you shall bear the foreign currency risk and expenses associated with the bank guarantee. Any and all currency conversions shall be at the bank’s prevailing foreign exchange rate unless otherwise arranged beforehand. For example, in a case of SGD debiting account and USD bank guarantee, if there is no claim, and the foreign exchange is US$1:S$1.35, we will credit your SGD account with S$13,500. However, if the prevailing rate is US$1:S$1.40, we will credit your SGD account with S$14,000.

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