Before entering any guarantee agreements, you need to create the guarantee types. In practice, you can, for example, create these based on different types of trade finance products you have in the system.
Create New Guarantee Types
Click on (1) Guarantees > Guarantee type.
Click (2) 'Add new'.
1) Choose a Guarantee Type Name.
2) Select a Guarantee Type and note that it can be the same as Name, or you can leave it blank.
3) Enter Text. You can put here some additional text to remember or leave blank.
4) Business day convention
If you are planning to follow your guarantee fee payments, you can define how to alter payment dates if the payment goes to a day that is not a business day. Currently, we have in the system only weekends Sat-Sun as non-business days. This is where you can specify how to treat the payment if it would roll out into the weekend.
No adjustment - paid on the actual day, even if it is a non-business day.
Previous - the payment date is rolled on to the previous business day.
Following - the payment date is rolled on to the next business day.
Modified previous - The date will be the first preceding day that is a Business Day, unless the first preceding Business Day is in the previous calendar month;, in which case that date will be the first following day that is a Business Day.
Modified following - The date will be the first following day that is a Business Day, unless the first following Business Day is in the next calendar month;, in which case that date will be the first preceding day that is a Business Day.
End of Month - No adjustment - the payment date is rolled on to end of the payment month, even if it is a non-business day
End of Month - Previous - the payment date is rolled on to the end of the payment month, if it is a non-business day to a previous day business.
End of Month - Following - the payment date is rolled on to the end of the payment month, and if it is a non-business
day it rolls to a next day business.
5) Click Save