ProCredit Bank

ProCredit Bank

Bank guarantees

 

 

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.

 

 

 

 

 

 

 

What is a bank guarantee?

A bank guarantee serves as a guarantee for the beneficiary that the partner to a contract (applicant) shall fulfil the assumed financial obligations. 

 

What are the benefits of using bank guarantees?

  • They allow you to negotiate better contractual conditions
  • They make it easier to obtain advance payment for the delivery of goods
  • They serve as an affirmation of a bank’s trust in its client’s business and as an indirect demonstration of business soundness
  • They protect beneficiaries against commercial risks of non-compliance or limited compliance with the contract by the partner
  • They mitigate the risk associated with non-payment for exported goods
  • They ensure protection against the risk of advance payment loss
  • They give users the option to make no advance payments

 

How does a bank guarantee work?

 

 

More reasons to choose B.C. ProCredit Bank S.A.

  • Financing your business

          If you have a running contract regarding delivery of goods or rendering services,

          you can benefit from lending services which allow the issuance of letters

          of credit and financing of the current activity.

  • Commitment and expertise

          We analyse the needs of your company and suggest banking products that

          can help you achieve your business goals. Our team of knowledgeable and

          experienced consultants is always at your disposal.

 

What type of guarantee do I need?

You can choose any of the following types of guarantees:

Type

Purpose

Payment guarantee

Ensures payment for services/products purchased.

Bid or tender bond guarantee

Serves to guarantee contractual obligations assumed by the bidder towards the party organising a tender.

Advance payment guarantee

Secures the advance payment made by the importer in favour of the exporter if the latter fails to fulfil contractual obligations.

Performance guarantee

Ensures proper performance of contractual obligations assumed by the exporter: rendering of services/delivery of goods.

Temporary admission (customs) guarantee

 

Guarantees payment of customs duties if goods imported into the country for carrying out a certain type of work are not sent back to the country of origin.

 

Indirect guarantee

Serves as a security in case the beneficiary requests a guarantee to be issued by a third bank.  

ProCredit Bank issues guarantees on a quick-access basis, as well as guarantees on a cash collateral basis.

The bank also receives bank guarantees in favour of its customers.

 

Application for bank guarantee
Sample of filled in application for bank guarantee