Bank guarantee

Additional protection for your business - choose a guarantee which suits your business needs

  • Participate at tenders, guarantee the execution of your works, delivery of goods or execution of service
  • Obtain better conditions when entering into contracts
  • Improve the safety of collection
  • Use the guarantee as an alternative to using your own cash

What is bank guarantee

Bank guarantee is a security instrument whereby the bank accepts the obligation to execute the payment up to the amount stated in the guarantee upon the invitation of the guarantee beneficiary, if the applicant fails to execute an obligation related to the underlying operation.

Benefits of using a bank guarantee

  • By using a guarantee, enjoy longer payment periods, which will have a positive impact on your cash flow and working capital management
  • Don't jeopardise your liquidity - Use a guarantee as an alternative to using your own cash
  • Use the possibility of receiving an advance payment for financing the liability assumed
  • Meet the requirements for participating in a tender

Types of guarantees

Choose the type of guarantee which best suits your business needs:

  1. Nostro guarantees - issued by a domestic bank to the foreign partner upon your request
  2. Vostro guarantees - issued by an foreign bank upon the request of foreign partners, in your favour
     Most common types of guarantees:
  1. Payment guarantees
  2. Bid bonds
  3. Performance bonds
  4. Advance payment guarantees
  5. Customs guarantees
  6. Loan guarantees
  7. Counter guarantees

If you have agreed on a vostro guarantee, we offer you the following services:

  • Advisory services when contracting a guarantee clause or ensuring the correctness of the vostro guarantee content
  • Advising of the received guarantee according to the instructions of the guarantor bank
  • Verification of the guarantee authentiTown
  • Preparation of the invoking letter under the guarantee

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