Bank guarantees play an increasing role in local and international trade. Under a bank guarantee the bank acts as a guarantor of a claim or obligation, which makes you a reliable and trustworthy partner.
ProCredit Bank issues various types of guarantees in foreign and local currencies:
Bid or tender bond
The purpose of this guarantee is to cover the risk of the company issuing a tender that the participating bidders will revoke/change their bid or that winning contractor will refuse to either sign the contract or provide the required performance bond.
The purpose of this guarantee is to cover the buyer’s risk that the seller (contractor) will fail to fulfil its obligations under the sales and purchase agreement (or service supply agreement) or will fulfil them deficiently.
Advance payment guarantee
The purpose of this guarantee is to cover the buyer’s risk that the advance paid by it will not be repaid in case of failed or deficient delivery of goods or supply of services.
Temporary admission (customs) guarantee
The purpose of this guarantee is to ensure the customs authority that the contractor will pay the customs duties resulting from the entry of goods in the importer’s country, if it does not return them to the country of origin after fulfilment of contractual obligations (finishing of works).
The purpose of this bank guarantee is to cover the seller’s risk of not receiving the price of agreement from the buyer.
This is a payment engagement of a local bank acting as guarantor in favour of a beneficiary issued on the basis of a counter-guarantee received from a third bank or the payment engagement of a third bank in favour of a beneficiary issued on the basis of the counter-guarantee received from ProCredit Bank.
ProCredit Bank issues guarantees on quick-access basis, as well as guarantees on cash collateral basis. The bank also receives bank guarantees in favour of its customers.