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Product Name
Lease Guarantee
Product Description
A lease guarantee is a written document issued by Bank of China to the lessor, at the request of the lessee, to guarantee on-time payment of rent by the lessee.
Product Functions
The product can help the lessee in getting finance, accelerating capital turnover and acquiring the usufruct of the lease subject matter. According to different modes of lease, the letter of guarantee can be divided into leases of assets and operate leases.
Product Features
1. Reduce capital occupation due to cash margin payment.
2. Help customer obtain finance and accelerate capital turnover.
3. Facilitate to obtain usufruct of equipment or facilities.
4. Reduce financial costs.
Eligible Applicants
Lessee involved in lease contracts.
Application Requirements
1. The applicant shall hold a business license of legal person that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;
2. The applicant shall have the qualification to engage in relevant business.
3. The applicant shall have a credit line at Bank of China, or pay full margin, or full guarantee acceptable to Bank of China.
Application Procedures
I. Application for letter of guarantee
1. The applicant fills out an application form or a contract for issuance of a letter of guarantee;
2. The applicant pays margin or submits other counter-guarantee;
3. The applicant submits primary documents related to the contract;
4. The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China.
II. Examination and issuance of letter of guarantee
1. Bank of China reviews the customer qualifications, underlying transaction and relevant documents;
2. Bank of China confirms the customer's margin or credit line and other mortgages;
3. Bank of China examines the written application and form of letter of guarantee;
4. Bank of China issues the letter of guarantee.
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