Contractor Business

Bank Guarantee Cell at MBL has been formed to capitalize the requirements of construction companies’/contractors who undertake high value infrastructural projects/contracts announced by public entities, private entities and international agencies. With objective of providing one stop individualized/customized solutions to the construction companies’/contractors, our focus has also been diverted towards uplifting financial position of contractor’s, thereby ultimately boosting the overall growth of national economy.

Our customers are not just limited to domestic construction companies/contractors and agencies but we also cater to the requirement of international companies/agencies who wish to perform contract in Nepal. Furthermore, our services is not just only limited to funded and non-funded requirement, but we also provide full-fledged financial consultancy services in regard to trade finance, project financing and managing cash flow of business.

With the feeling of responsibility and sense of pride in what we do, we provide wide range of below mentioned services/facilities:

Funded Services:

Short Term Loan: We provide short term loans in the form of Overdraft, Demand Loans, Trust Receipt to cater the short term requirement of contractors and ultimately manage their working capital requirement efficiently.

Long Term Loan: Long term loans in the form of Hire purchase and Term Loans is provided to purchase the capital expenditure goods such as equipment’s/vehicles or buildings required for construction of projects. We provide such long term facility to allow contractors to create a value in the long run thereby enhancing their business portfolio and net worth while simultaneously managing their cash flow side by side.

Contract Loans/Project Loans: Contract loans/Project Loans is provided to construction companies’/ contractors if in case they require loans to undertake specific projects. We provide contract loans/project loans to contractors upon due diligence of project and their financial requirement.

Non-Funded Services:

Bid Bond:We provide Bid Bond to contractors/construction companies to allow them to bid for various projects they wish to undertake. We trust our client and stand as a guarantor for them undertaking full responsibility if in case the contractor fails to perform his obligations.

Credit Commitment: We provide commitment on behalf of the contractor/construction company favoring the beneficiary that the contractor/construction company is availing credit facility from us and if in case the contractor/construction company is in shortfall of fund due to unavailability of budget, bank shall provide required deficit fund for construction of project in order to meet the project completion timeline.

Performance Bond: We issue Performance Bond on behalf of the customers (upon awardation of project) favoring the beneficiary underlying with the principal that bank shall take full responsibility if the contractor defaults the responsibility assigned to them.

Supply Credit Guarantee: We provide Supply Credit Guarantee to supplier of the goods on behalf of construction company/contractor ensuring that the supplier shall be provided with payment against the goods procured by the contractor/construction company as per specified terms and conditions.

Advance Payment Guarantee: We issue Advance Payment Guarantee to beneficiary on behalf of the customers undertaking full responsibility that the mobilization fund received by the contractor shall be utilized for initial construction of projects. Should the contractor breach the contract terms and agreement and use the fund for any other purposes other than mentioned in contract agreement, bank shall ensure the beneficiary that the mobilization fund provided by them shall be returned to them.

Counter Guarantees:We also provide counter guarantees on behalf of the foreign customers undertaking high value infrastructural projects in Nepal. We issue counter guarantees against guarantees received from foreign banks undertaking full responsibility that bank shall be liable if in case the foreign contractor fails to perform his obligations as mentioned in contract.

Letter of Credit: We provide LC facility to construction companies/contractors for purchase of construction materials and equipment’s either domestically or from foreign country. We stand as a guarantor on behalf of contractor/purchasing entity and assure the seller of the goods that he/she shall receive payment from the bank if in case the contractor/purchasing entity do not provide payment to them as per agreed terms and conditions.