A bank guarantee is a security instrument in domestic and international business by which the bank guarantees the user that it will pay the amount of the guarantee if the principal debtor does not fulfill its obligations.
The user is certain that its receivables will be collected, while the debtor is certain that the payment under the guarantee will be made exclusively in accordance with the terms of the guarantee.
Reliable security instrument - The most commonly used and most reliable security instrument that provides a high degree of protection against various risks in international trade and domestic business.
Adjustment to the needs of certain job - Provide the widest range of obligations arising from the work contracted with your business partner, such as payment for goods and/or services, refund of advance payments, seriousness of the offer, good performance of the contracted work, settlement of custom obligations, etc.
Possibility to negotiate more favorable business conditions with the use of guarantee - By issuing guarantees, we can support your business presenting your financial capacity and ability to fulfill your contractual obligations. By contracting a guarantee, you reduce the use of your own working capital thus improving your current liquidity.
Types of Guarantees
Tender guarantee - Serves as a security in case that company, which was selected as the first ranked bidder in the tender, withdraws from signing the respective contract.
Performance guarantee – Guarantees for good performance of contractual obligations (delivery of goods/works).
Payment guarantees - To ensure timely payment of obligations arising from the contractual relationship.
Guarantees issuance forms
In written form
In electronic form via SWIFT (interbank encrypted messaging system) through another bank (usually a commercial bank of the guarantee user)
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