The Bank guarantee secures performance of obligations. It is a written commitment, issued by the Bank upon request of the borrower (principal), under which the Bank is obliged to pay a certain amount to the principal’s lender (beneficiary) upon a written request of the latter.
Bank guarantees can be used if you intend:
- to take part in tenders on implementation of works, provision of services and delivery of goods;
- to assume contractual and/or payment obligation;
- to get an upfront payment for performance of contractual obligations;
- to assume contractual obligations undertaking a commitment to ensure the quality of the implemented works, provided services or delivered goods.
- to import goods based on down payment, often applying for a loan for payment purposes.