The ONE Stock Payment Guarantee is designed for the fuel retail industry as a unique and accepted alternative to the traditional bank guarantees. The Stock Payment Guarantee Policy is targeted at all fuel retail service station businesses that have a franchise branded convenience store (Pick ‘n Pay Express, OK Express, Spar Express etc.) where the Retailer is required to provide the Supplier with a guarantee security for stock purchases made on a credit basis.
Our Bank Guarantee Solution (with participating Banks) is also available for this stock guarantee product and is a great solution to release the cash or assets tied up in an existing bank guarantee without the need to replace the actual bank guarantee held by the Supplier. It is in essence a ‘security swap’ giving the Retailer access to valuable working capital.
Key Benefits
- New retailers don’t have to finance, or tie up valuable security or working capital in providing stock payment guarantees
- Existing retailers can substitute their current bank guarantees and inject some liquidity into their business or reduce liabilities
- Existing retailers on ‘cash terms’ can now afford a guarantee to trade on a credit basis
- Existing retailers can ‘top up’ their existing guarantees to meet current Supplier requirements
- The annual premium is an operating expense of the business and thus written off against taxable income
- Opportunity cost of having released your cash or securities
Terms and Conditions apply.