Entrepass Bankers Guarantee

[ukdesigner]

Hi.

Hopefully some wise person can help this with me. I have my aip letter from MOM for my entrepass, my bank account open and my business all registered. The last thing I need to do is collect my entrepass and to do that I need to furnish a 'Bankers Guarantee'. Now you'd think the bank would know what that is!! but they don't!!!. I have emailed MOM but they can take 3 days to reply and I would like to get the ball rolling and start my business, so anyone have any ideas as to what that is?

I presumed it was either a cheque for the money or a letter from the bank confirming the funds, for which they 'hold' for MOM.

Thanks in advance.

[Plavt]

Hopefully one of our local resident Mods will give you more info but perhaps this link may help for the time being?

http://info.maybank2u.com.sg/business/g ... antee.htm#

[ukdesigner]

thanks for that. I have read and digested.

Anybody else know any more at all?

Please.....

[ctavakoli]

i went in on friday to pick up my entrepass from mom - they were very helpful.. in fact because my flight was delayed, i got there at 1.45pm.. they said there's an hour and a half wait and if you meet the officer after 3pm you'll need to pick up the pass tomorrow.. i was flying out at 7.30am the following morning.. so anyhow, i went up, prepared to beg.. in the hour and a half time i had to wait i met with my account manager from citi for a coffee - i'd never met him before but we talk often.. went back and within 10mins i was called up - was 3.20pm.. i said to her straight away, with a worried look on my face, "they told me if i only meet you after 3pm that i'll need to pick up the pass tomorrow..".. she said, "that's correct", I said, "i'm flying out at 7.30am tomorrow morning..".. she asked to see my ticket / itinerary, so i quickly showed her - and then quickly said, "no problem - i'll get it done for you by the end of the day.."

joyful feeling inside... her next words, "ok sir, do you have your bankers guarantee?".... GULP .. "My what?", "Your bankers guarantee you agreed to furnish".. i concede, it was my fault completely as it was something i agreed to provide, BUT, in the week before i flew over i checked over my documentation checklist with the officer over the phone at MOM and it said simply passport, white card from entry and Approval in Principle.. i plead my case, but to no avail.. she said (and she's right), "it's no problem sir, you can pick this up anytime in the next 6 months, just get it next time - you're already approved so you can work in Singapore with your wite card and the Letter of Approval..".. she was right but i said, ok wait just one minute, i want to call my banker, i just had coffee with him.,. i called him - he had no idea how to go about doing this - and he said even if he did know - it;s a 3 day plus process.. i hung up, and asked jokingly if i could just give them $3k cash to hold.. no go of course..

so i left w/o my pass now i'm rounding up templates to send to my banker to consider / use to write me one.. if anyone has got one from citi or knows an easy process of getting one in singapore, please advise..

thanks heaps..

ct

[ksl]

The bankers guarantee is just a letter from the bank, to cover the bond, if you default on your business, and do a runner, just another way of finding a guarantor sponsorship really! MOM doesn't need the cash, just the banks word, they will pay if anything goes wrong. It's up to the bank, if they withhold the cash...

I would negociate a better deal, if they try to take the cash, many banks would give a bank guarantee free of charge, some may charge a nominal fee... If your bank doesn't do them, find one that does, because for the small business 3000K is handy to have in the cash flow department.

Banks are banks and many will screw you, for the sake of screwing...so try also to invest the money in a frozen account, if they will allow that, so you get the interest and not them.

One very important aspect in business, is don't think your friendly bank guy, is that friendly, he's in business to make money, and may wish to loan you money too....be careful not to commit to a loan, if you can manage business without. It is always better to suffer a little and survive, than be hounded for cash! banks will screw you over well and truly, with fees and reminders, you have to study them, and use them to your advantage!

I believe also you may still have time, to ask a sponsor PR too, to vouch for you, so consider carefully, 3000$ is alot, if you can do it another way, you have 6 months don't forget!

Think of cash flow! and investment, rather than handing 3000$ to the bank, or find a singaporean or PR to guarantee, for a small charge. Shop around!

In fact I have just the idea....! If you all have the time to wait 48 hrs. I'll PM you both!

[ctavakoli]

thanks ksl, i'll await the pm..

i'm going to see what citi offers - i assume they're not going to expect me to secure that money in an account on their behalf, but who knows what they'll try and pull, you're dead right, they'll try anything..

regarding, "to ask a sponsor PR too, to vouch for you", I asked in MOM - she said they're no longer accepting sponsors - if i'd done it on my original app it would have been ok, but apparently on new apps, hey're not accepting them - according to the lady at counter XX in MOM

ct

[ksl]

regarding, "to ask a sponsor PR too, to vouch for you", I asked in MOM - she said they're no longer accepting sponsors - if i'd done it on my original app it would have been ok, but apparently on new apps, hey're not accepting them - according to the lady at counter XX in MOM

Sorry UKdesigner, it appears that PR's cannot be used now, so its pointless to PM you, it would have been a good alternative! Although i guess the rules have changed!

Although you will be wiser for the info, and can maybe avoid the pitfalls!

[sundaymorningstaple]

Most local Insurance brokers will be able to secure a banker's guarantee via and insurance arrangement. I know Maybank does this as I've used them when I had my Employment Agency License which also carries a 20K bond or bankers guarantee. Just ask any insurance broker and they will be able to sort you out in no time.

sms

[ukdesigner]

when I did my bankers guarantee, which I hasten to add took weeks (not ltd company but sole trader) I had to put the money into the account. Citibank then hold it as secure funds and I earn interest over the 2 year period. Naturally when my 2 years are up I'll have to pay them again to print off another document for me to sign and then that'll be it. Off course the fees are much higher than the interest earned!

You may find that Citibank don't have a standard letter for this type of service. MOM provided me with one which I then forwarded to the bank who then printed it off on their letterhead. Such a long winded thing.

As SMS has said in the past this is a different way as most people do ltd companies rather than sole traders but I prefer to be a sole trader personally, just my thing.

Sorry UKdesigner, it appears that PR's cannot be used now, so its pointless to PM you, it would have been a good alternative! Although i guess the rules have changed!

Thanks KSL but i think you got the wrong person. You can apologise as much as you like... I really don't mind!

[ctavakoli]

ukdesigner,

i'm also with citi and also needed to send them a template, (i found an ocbc template) - i've also been told 2 weeks. this in itself is making me re-think who i should be banking with as i had a separate meeting with clariden leu and standard chartered over the weekend in bali and i asked them out of curiousity about their process and they told me if i was an existing customer of theirs as i am of citi's ipb, it wouldn't take more than 2 days.

ct

[Winxkid]

every local banks provide this service. Most likely, You might got for yourself an inexperience call agent when You call up the bank

[bwb]

when I did my bankers guarantee, which I hasten to add took weeks (not ltd company but sole trader) I had to put the money into the account. Citibank then hold it as secure funds and I earn interest over the 2 year period. Naturally when my 2 years are up I'll have to pay them again to print off another document for me to sign and then that'll be it. Off course the fees are much higher than the interest earned!

You may find that Citibank don't have a standard letter for this type of service. MOM provided me with one which I then forwarded to the bank who then printed it off on their letterhead. Such a long winded thing.

As SMS has said in the past this is a different way as most people do ltd companies rather than sole traders but I prefer to be a sole trader personally, just my thing.

Sorry UKdesigner, it appears that PR's cannot be used now, so its pointless to PM you, it would have been a good alternative! Although i guess the rules have changed!

Thanks KSL but i think you got the wrong person. You can apologise as much as you like... I really don't mind!

Hey UK Designer, I tried to PM you but I don't have enough posts yet, I was hoping I could ask you a few questions about your entrepass process as I'm in a similar boat, if I make it to singapore I'll buy you a six pack?

Please let me know, thanks!
Ben

[ukdesigner]

what do you want to know?

[bwb]

Hi! Thanks, I was hoping to email or PM you in private to tell you my story and see what you think? From reading I thought you applied for the pass before forming a company and you are a self employed designer right?

Let me know as just wanted to see what you thought of my situation and if I had a chance to be approved,
thx, ben

[Plavt]

bwb,
You need to make at least 5 posts before you PM will function correctly.