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Bank guarantee

The bank guarantee is a written undertaking issued by a bank at the request of its client.

By issuing the bank guarantee, the bank takes an irrevocable undertaking to pay a specific amount of money in the event of default or termination of the contractual relationship between the client and the beneficiary upon presentation of a written demand for payment in accordance with the terms and conditions of the undertaking.

ProCredit Bank can issue all types of bank guarantees depending on your business needs.

In addition to these guarantees, where ProCredit Bank acts as a guarantor, we also offer services for advising of bank guarantees issued in your favour by other banks.

Advantages of the bank guarantee:

-           It provides security of the guaranteed payments;

-           It is a powerful instrument for securing various liabilities;

-           It guarantees the ability of business clients to fulfil their contractual obligations;

-           Every stage of the transaction can be secured by a bank guarantee.

Example:

The company represented by you participates in public procurement. The Contracting authority requires assurance that you will perform your obligations in good faith. By issuing a bank guarantee, the Bank takes an irrevocable undertaking to pay the Contracting authority in the event that you fail to fulfil your contractual obligations to the Contracting authority. In this way, the Contracting authority is sure that you will perform the agreed work without he has to worry that he will remain uncompensated in the event of non-performance.

Frequently Asked Questions

  • Payment guarantees
  • Performance guarantees
  • Tender guarantees
  • Advance payment guarantees
  • Others, depending on the specific needs of the client and their business.

Yes, we can issue a bank guarantee within 24 hours.

Unlike documentary credit, bank guarantees are not subject to confirmation. Alternatively, an undertaking issued in the form of a bank guarantee may be confirmed by issuing it against a counter-guarantee from another bank.

Should a complying demand for payment is presented in the event of non-performance of certain obligations, the Bank shall pay the Beneficiary the amount claimed in due time in accordance with the terms of the specific guarantee.

You can require your counterparty to provide you with a guarantee from a bank that you consider sufficiently trustworthy based on its credit rating.

Phone:
0700 170 70
Short phone:
*7000
International line
+359 700 170 70
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