International bank guarantee

Bank guarantees represent a more significant contractual obligation for banks, such as real estate contracts, international trade and infrastructure projects. This can be used to essentially insure a beneficiary of the guarantee from loss or damage due to non-performance by the other party in a contract.   

We offer the following services:

• Outward Bank Guarantee (covered, uncovered)
• Outward Bank Guarantee line
• Inward Bank Guarantee

When Bank Guarantee is used?

• TRUST - Building trust between the parties in trade for the fulfillment of their contractual obligations.
• INITIAL TRADE - For start-up business.
• PROPOSAL - Proposal has been offered from counter-party.
• BANK B/G LINE – Proposed by bank or bank B/G line is available etc.

Typical bank guarantees in trade cycle:

Benefits:

• Encourages proper and timely performance of the contract.
• Transfers credit-worthiness of the principal to the bank, which allows parties to negotiate better terms.
• Ensure to pay compensation, if contract is breached.
• Documentary processing is lower than compared to the letter of credit.

Bank guarantee cycle:

Terms & Conditions

Required documents:

• International bank guarantee application form /download/;
• Contracts, agreements;
• In case of an uncovered BG, the loan related documents are required additionally.