Yield 4 Finance (P) Ltd. involves the use of our letter of credit and guarantee facilities with numerous institutions. Our letter of credit clients are importers and trading companies worldwide looking to expand their business by leveraging their existing cash flow to its maximum.
Whether you are an importer, trader, broker, introducer, or consultant, if you have business that you think might interest us, give us a call or write us an email. We would be very happy to speak with you about your transactions. If we aren't the right address, maybe we can point you in the right direction.
Its an indemnity bond which is non -cancellable in nature and is guaranteed by an insurer to assure the investors that the amount including both the principal and its interest or either of these shall be paid. The independent entity that assumes the responsibility is called the guarantor. Also there may be more than one guarantor for a security. This makes them liable to pay in case of a default on pro rata basis.
Insurance companies these days facilitate financial guarantees which are further used to attract investors by the issuers. It also acts as a way of adding an extra security layer thus giving these guaranteed securities a higher credit rating.