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Trade Finance

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This is the provision of acceptable bank instruments to facilitate trade between parties. Most of the parties seeking trade finance services from Ableways International Ltd would be the tendering/bidding companies who apply for tenders to governmental, non-governmental and recognized parastatals. According to the Public Procurement and Asset Disposal Act 2015; the Act that set up the Public Procurement Oversight Authority (PPOA) which overseas Public Procurement in Kenya, all bids/performance/advance payment must be supported by a bid/performance/advance payment security in the form of a bank guarantee or insurance guarantee from reputable banking or insurance partners in Kenya.  When the procuring entity/ employer talks about reputable Commercial Banks in Kenya, it is because Government Institutions know that there are those banks that are not reputable. Ableways works only with reputable banking partners who governments ministries and institutions accept as so. Therefore our company is at the center of the of these trade finance arrangements. Through reputable commercial banks in Kenya, Ableways International is in a position to negotiate; a comfortable arrangement with the banks on behalf of the bidders to counter guarantee them to these reputable commercial banks in different ways:

This is the basic type of tender/bid security in form of a bank guarantee. A tender security is required to protect the employer against a bidder’s conduct which would warrant the forfeiture of a contract that has been awarded. There are various terms and conditions that may also warrant a call up of a guarantee which Ableways is in a position to explain in detail to our clients. It is usually between 0.5%-2% of the total contract sum.

Kindly talk to us about your bid bond needs and we will walk with you shoulder to shoulder throughout the application process as we prepare your bid bond with the duty of care required to get you the bid bond in the correct form.

Talk to us today, or order your bid bond online

A type of a bank guarantee that assures employer of satisfactory completion of a project and that the contractor/supplier who has been awarded will stick to the terms and conditions of the contract as per employer/procuring entity’s specification and requirements. Under normal terms, performance bonds are between 5%-10% of the total contract sum quoted by the contractor/supplier during tendering, but in isolated cases the percentage could got to 20%. Each contract is bespoke and each contract comes with its own terms and conditions of contractual engagement. Though our portfolio insurance cover extended to us by well-established; local insurance and international re-insurance partners acceptable to our banks, we are able to underwrite a sizeable amount of risk to cover the performance risk and hence reduce your company’s cash margin requirements to a substandard minimum. How?

Talk to us today, or you might also want to Order your performance bond bank guarantee online

This is usually advance payment security of a bank guarantee. It enables a contractor/supplier to obtain a pre-payments from the employer/procuring entity against payment certificates at draw-down as per the schedule of payments agreed upon in the contract. Once the employer/procuring entity (usually a government institution or NGO) advances money to the contractor/supplier, it is a requirement that the contractor/supplier offers reasonable security for that money through a bank guarantee acceptable to the employer.

Ableways International is able to arrange advance payment guarantees through its financial solutions inter-mediation partner banks to help contractors/suppliers get pre-payments to assist them to mobilize their projects. Once this happens, projects becomes self-liquidating through successful certificates of payments. Advance payments are common in huge construction project or very specialized supply contracts such as classified contracts; but this will be explicitly declared in the tender document; including the formats expected. For this reason, not all tenders/tender documents will have advance payment provisions. Any bank is able to issue advance payment guarantees immediately upon payment of the requisite commissions. However, banks will just not release advance payment funds that have hit their account without requisite security for two reasons. One of the reasons is that no bank wants to lose a deposit for whatever reason. Secondly, since the advance payment guarantee is conditional; meaning that it becomes active once the funds hit the bank’s account; there is usually a factor of a deposit liability on the bank’s part. The bank therefore will not just release the advanced funds without getting requisite security to cover for whatever risk that may arise in the event of a default; meaning the that the facility is called-up by the procuring entity (Crystallizes).Since Ableways understands the difficulty contractors/suppliers around the region face when seeking access to these pre-payments, we are able to underwrite a sizeable amount of risk through our local and international well-known re-insurance companies. For that reason, we are therefore able to grant access of between 30% – 85%; without requiring the bidder/contractor to place any securities; subject to our terms and conditions.

Kindly order you advance payment guarantee online

A work permit is the popular and most used name for an Entry Permit. A work is usually needed by foreigners who come to stay or work in Kenya. There are various classes of work permits which classes are usually designated by numbers (A – M). We are able to arrange this type of guarantee as well through our financial inter-mediation banking relationships. Talk to us today

This type of a guarantee is also called a payment guarantee and it is a promise to pay on first written demand without protest by bank on behalf their client to a third party should the client default his obligations. It could be that a supplier is giving your company a credit line to access certain supplies on credit or the supplier would want to give you a license to stock his goods as a -. It could also be a guarantee to the regulator that is usually 1-5 year period; such as that arranged by insurance brokerage firms to the Commissioner of Insurance or a customs guarantee such as that required by Kenya Revenue Authority. Ableways is in a position to underwrite this risk through our financial inter-mediation solutions model using our insurance portfolio cover offered to us by well-established local insurance and international re-insurance companies acceptable to our banks.  This would help to mitigate the risks involved by offering satisfactory bank guarantees through our partner banks. Talk to us today

This is a type of bank guarantee issued by a guarantor bank to its client and is used as a ‘payment of last resort’ should a client fail to fulfil a contractual commitment with a third party. It stipulates terms and conditions to be fulfilled by the client to the third party. This is usually a conditional bank guarantee. Ableways International Limited is able to arrange for this type of a bank instrument through local banking partners

Talk to us today about your SBLC needs

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