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Guarantee

Manage international trade risk

A guarantee or bond, as they are sometimes known, provides the beneficiary with acceptable security if the applicant (you) fails to fulfill its obligations in the underlying contract.


Why is Guarantee right for you?

  • You can use it to guarantee payment in case of default or non-performance
  • Gives suppliers payment assurance to accept open account trading
  • Allows you to leverage your credit standing to secure banking facilities for other companies

How does a Guarantee work?

Extensive experience, attractive terms

  • We have extensive experience of guarantees, together with a worldwide network of group offices and correspondent banks to meet your domestic and international needs
  • Our global presence means we can provide you with attractive terms on foreign guarantees
  • Our specialist Guarantees Team based in Hong Kong can provide you with valuable support for your business.

Commonly used guarantees

  • When you're trading internationally you may often come across the following guarantees. We can arrange these guarantees to cover many other kinds of risk.

Performance Bond

  • One of the most common types of guarantee
  • Usually required for the duration of a contract, plus a grace period to allow the beneficiary to make a demand in the event of non-performance of the obligations covered by the guarantee.

Tender Guarantee/Bid Bond

  • Often called for in support of contract tenders, particularly in international trade situations
  • Provides the beneficiary with a financial remedy if the applicant fails to fulfill any of the tender conditions.

Advance Payment Guarantee

  • Used where the applicant calls for the provision of a sum of money at an early stage of the contract
  • The beneficiary can recover the amount paid in advance, or part thereof, if the applicant fails to fulfil their underlying contractual obligations.

Customs Bond

  • Provided to customs enabling the applicant to import goods across the border without the immediate payment of duty or tax.

Credit Guarantees

  • Enables an applicant to secure banking facilities for a subsidiary, associate company or personal account in other countries.

Rental Guarantees

  • Enables an applicant to secure a premises and usually required for the duration of a rental contract, to allow the landlord to make a demand in the event of non-performance of the rental contract as covered by the guarantee.

Next steps

Payments and Cash Management

Maximise your cash flow while minimising your effort

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  • Enhance your cash flow by receiving customer payments on time every time
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