There are many borrowers searching the financial market place believing they can access any professional service, or a valid financial service or Bank Guarantee service without any money up front. It is a fact – there is no free ride available.
No airline will fly you around, even when they might be desperate for business during COVID times, if you do not first buy and pay for the ticket. And you have to be an acceptable passenger in the firsts place.
There is no free ride for any professional service. Ask consulting firms like IBM Global Services, KPMG, Accenture, Ernst & Young, Pricewaterhouse Coopers, Deloitte, Boston Consulting or McKinsey. You will never get a professional service without your retainer funds on deposit with them. You will also not be served by a qualified lawyer or accountant without having some earnest money from you on their account first.
You will have to be an acceptable client to receive a bank guarantee service in the first place.
Are you qualified so that any third party will be prepared to enter into a risk of millions of dollars or Euros for you? No one will ever lend you a valid financial instrument if you are not qualified and be able to account for an eventual financial risk you might create on the basis of the guarantee instrument. “Did you ever think about what happens in case you default on your commitments, and the instrument backing up your loan or transaction is being called by your lender?” NO BANK will take the risk on a transaction for a customer, unless the bank is covered by hard cash, tangible assets or investments you have in the bank.
And you will have to commit yourself financially to access this service!
Only once it can be established that you can be considered qualified, the issue of eventually required deposits or commitment fees may become an issue. All banks charge fees to create and transmit the Bank Guarantee to a Funder. No bank will do that for free! No Bank will take the risk on a transaction for the customer. Never!
If the bank is not paid the transaction fee, no Bank Guarantee or Standby Letter of Credit will ever be sent. If you are not prepared to engage with your financial commitment to the transaction, you simply will not get a valid service from anybody.
But it is also true and a fact that there are plenty of dreamers – but none of them ever has received, or will receive a free ride from a bank or a provider or facilitator! Banks daily issue and send multimillion dollar assets for customers, and they do not charge anything upfront, but only for valuable clients parking significant wealth in the bank already.
You can be absolutely sure that no provider is going to pay the bank fees for you, why would he?
It is true that many people have been scammed out of Upfront Fee Money, and as a result of having a bad experience those same people made up an investment rule up in their mind that they would now only enter a transaction if they did not have to risk any money or put any money up front. This effectively created a rule that prevents them from having ANY success or EVER completing ANY BG transaction because without money paid upfront to cover the bank costs, NO deal will ever get concluded!
As there is no free lunch in life, there certainly are no free million dollar bank guarantee transactions if you are not prepared to financially commit yourself.
You only get what you pay for: If you pay nothing, you will get nothing. It is one of the most fundamental economic principles.