Corporate guarantees & commitments
Contractual obligations entered into by a company for a defined commercial transaction. Purpose, beneficiary, conditions and accountability must be stated precisely.
Trade Finance
Instruments, documents and institutional pathways.
A clear framework for commercial purpose, parties, documentary function, risk allocation and Nova’s applicable role.
Instrument landscape
Precise terminology before structure.
The same commercial objective may require corporate capacity or bank/institutional issuance. These pathways are not interchangeable.
Bank or institutional guarantees
Where the structure requires a bank or regulated issuer, the pathway involves the relevant institution and its own approval and issuance process.
Documentary letters of credit
Documentary payment mechanisms in which banks, buyer and seller operate against documents complying with the credit terms.
Standby letters of credit
A documentary undertaking used as support following non-performance of an underlying obligation, normally through an institutional issuer.
Performance guarantees / bonds
Protection for a beneficiary against failure to perform a contract, with demand conditions defined by the instrument.
Advance payment guarantees
An instrument intended to protect repayment of contractual advances when agreed conditions are not fulfilled.
Corporate capacity
Commitments defined by the corporate and contractual structure.
Nova may assess a corporate role where consistent with the transaction, documentation, approvals and applicable legal structure.
Bank or institutional pathway
Issuance and decision remain with the relevant institution.
Nova may contribute to preparation, structuring and coordination while the institution applies its own controls and decides under its own mandate.
Transaction lifecycle
Nine stages, one accountable record.
- 01
Transaction assessment
Scope, evidence and ownership are recorded before progression.
- 02
Counterparty and corporate documentation
Scope, evidence and ownership are recorded before progression.
- 03
KYC, KYB, AML and sanctions review
Scope, evidence and ownership are recorded before progression.
- 04
Instrument structuring
Scope, evidence and ownership are recorded before progression.
- 05
Drafting
Scope, evidence and ownership are recorded before progression.
- 06
Review and approval
Scope, evidence and ownership are recorded before progression.
- 07
Institutional coordination where required
Scope, evidence and ownership are recorded before progression.
- 08
Issuance or execution
Scope, evidence and ownership are recorded before progression.
- 09
Monitoring and records
Scope, evidence and ownership are recorded before progression.
The regulatory framework is explained separately.
FCA AML Annex 1 registration concerns the applicable AML supervisory framework; it is not presented as the source of issuance authority.
Discuss a transaction with Nova.
Share purpose, parties, jurisdictions and available documentation through the institutional channel.
Trade Finance enquiry