ICBPO leasing
Bank Guarantee ICBPO Myth…. Exposing the Truth!
Bank Guarantee ICBPO Myth…. Exposing the Truth!
We work with 6 of the 7 largest funders in the world and NONE will reply after a BG Issuer sends a 799 with an ICBPO! It is a myth that a Funder will send an ICBPO to a BG Issuer! It is hard to find one single funder that will do this… It is usually unformed people that has no clue about bank Guarantees and SBLC that still talk about ICBPO because ICBPO has been banned and is now illegal.
Why? When an ICBPO is issued the BG Issuer can then take the ICBPO and leverage it to buy a BG! This means that people can promote themselves as BG Issuers when they actually DO NOT have ANY Bank Guarantees at ALL.
They use the ICBPO commitment from the funder to go and buy a Bank Guarantee to supply to you the client, so you can complete the deal. Funders have known about this game for years, they see it as misrepresentation and fraud.
As a result almost all Bank Guarantee Funders will NEVER in their right mind will EVER issue an ICBPO because they will not allow the funders ICBPO to be leveraged by the BG Issuer prior to settlement.
What is ICBPO (Irrevovable Conditional Bank Pay Orders)?
ICBPO means (Irrevovable Conditional Bank Pay Orders). ICBPO has been banned and have been made illegal by most governments. BG and SBLC Issuers that continue to ask for ICBPOs as payment are completely out of touch by seeking a form of financial payment that has been made illegal in most countries. Any supplier that requests payment by ICBPO clearly doesnt understand the Bank Guarantee Industry and is an amateur not a professional. You cant be a credible financial supplier and request your customers pay you using illegal means eg ICBPO.
So why have most governments banned and made ICBPOs illegal?
Answer: When an ICBPO (Irrevovable Conditional Bank Pay Orders) for 500 Millions Dollars is lodged with a Bank in Country A to “Irrevocably” pay a Bank in Country B. The National Balance of Payments Accounts in BOTH Countries is immediately effected!
Country A incurs a 500 Million Dollar Balance of Payments Debit (Deficit) and Country B receives a 500 Million Dollar a Balance of Payment Credit. This immediately affects BOTH countries National Debt Balance Sheets and can also have an affect on the countries exchange rate because of the sheer size of the transaction.
The the above action occurs immediately when the Bank Pay Order is written because the Bank Pay Order is “Irrevocable” meaning it cannot be cancelled.
The situation gets worse when Bank A issues the ICBPO for 500 Million but Bank B doesnt deliver the Bank Guarantee and defaults on the transaction…. This leaves Bank A unable to cancel their ICBPO or recover their 500 Million Dollar payment for a transaction that did not occur. AND Leaves Country A with a 500 Million Dollar Deficit when no goods or services were transacted!
Most Governments have now recognized the extreme risk and effect ICBPOs have on their economies and as a result they have banned them and made ICBPOs illegal for all parties except for very large specially licensed financial institutions that have been given direct government approval. Those institutions are few and far between and rarely operate in the Bank Guarantee Industry.
So ICBPOs are well and truely off the Bank Guarantee menu! Normal BG and SBLC Payment Guarantees of MT799 have replaced them.
Bank Guarantee ICBPO Myth…. Exposing the Truth!
Bank Guarantee ICBPO Myth…. Exposing the Truth! We work with 6 of the 7 largest funders in the world and NONE will reply after a BG Issuer sends a 799 with an ICBPO! It is a myth that a Funder will send an ICBPO to a BG Issuer! It is hard to find one single funder that will do this… It is usually ignorant people that has no clue about bank Guarantee and SBLC that still talk about ICBPO because ICBPO has been banned and is now illegal.
Why? When an ICBPO is issued the BG Issuer can then take the ICBPO and leverage it to buy a BG! This means that people can promote themselves as BG Issuers when they actually DO NOT have ANY Bank Guarantees at ALL.
They use the ICBPO commitment from the funder to go and buy a Bank Guarantee to supply to you the client, so you can complete the deal. Funders have known about this game for years, they see it as misrepresentation and fraud.
As a result almost all Bank Guarantee Funders will NEVER in their right mind will EVER issue an ICBPO because they will not allow the funders ICBPO to be leveraged by the BG Issuer prior to settlement.
DL Financial Ltd. 