Issuance of Bank Guarantees
- Helping you to create stronger business relationships by giving your customers and suppliers the security of knowing that payments are guaranteed
- Proving your financial credibility while guaranteeing your ability to meet contractual obligations
- Giving you the reassurance of a secure, globally recognized method of settling overseas and domestic trade
Whom is it Suitable for?
For all companies which are required to ensure a safeguarding tool in favor of their counterparties in the frame of business negotiations or according to legislative regulations of the activity.
These companies may be buying or selling goods, participating in tenders or having other commitments towards the beneficiary under the guarantee.
Frequently Asked Questions
According to the type of underlying obligations being secured:
- Tender guarantee /bid bond: to ensure against the bidder's withdrawal of the bid after being awarded or not concluding the contract assigned,
- Performance guarantee: for ensuring performance/fulfilling conditions of the contract,
- Payment guarantee: secures payment in favor of a seller or a landlord according to the agreed terms,
- Advance payment guarantee: ensures refund of an advance payment made in case of non-performance of obligations under the underlying contract,
- Other types of bank guarantees: warranty guarantee, loan guarantee, customs guarantee etc.
Unlike letters of credit, bank guarantees are not a payment but a security instrument.
No. Unlike letters of credit, bank guarantees are not subject to confirmation. In some countries 'confirmation' of a bank guarantee is used to describe the Issuance of a bank guarantee against a Counter guarantee received by another bank.
Yes, upon all parties consent and when the guarantee is:
- Issued subject to the Uniform Rules for Demand Guarantees, Version 758, Revision 2010,
- Is expressly marked as transferable,
- All the rights and obligations under the underlying relationship for which the Guarantee is issued have been transferred to a new beneficiary under the guarantee.