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Tatra banka

26.10.2016 11:17

Bank guarantee

Use the security tool of bank guarantee in your business transactions. Tatra banka
provides all guarantee types based on clients' and correspondent banks' requests.

  • negotiate more favourable contract conditions with your business partner
  • we provide a comprehensive service range


  • negotiate more favourable contract conditions with your business partner
  • we provide a comprehensive service range
  • a bank guarantee is a security instrument by which the contract parties can minimize associated commercial risks
  • an issued guarantee supports the client's credibility towards their business partner (beneficiary of the guarantee)
  • a bank guarantee enables the client to agree more favourable commercial conditions against their business partner (postponed payment, advance payment, retainer disbursement, substitution of cash in account of a contracting authority or lessor of commercial premises, etc.)
  • in international trade guarantees can be defined according to Uniform Rules for Demand Guarantees issued by the International Chamber of Commerce in Paris and revised in 2010, Publ. 758, which include international commercial practices.


A bank guarantee is a written declaration of the bank by which the bank irrevocably undertakes to pay to the creditor (beneficiary of the guarantee) a certain sum according to the content of the letter of guarantee in the case the debtor (the client/guarantee applicant) fails to fulfil their obligation secured by a bank guarantee.

  • based on the client´s or correspondent bank´s request, we provide all types of bank guarantees
  • in connection with bank guarantees, we provide all related services to our clients, such as:
    • advisory and consultancy at the stage of contract drafting
    • advising of a guarantee issued by other bank in favour of the client

Guarantee types

Benefits for the buyer

Benefits for the seller

bid bond

ensures a range of serious bids

no need to give security in cash to the caller/buyer

payment guarantee

the option to have the invoice maturity deferred

payments for supplies to the buyer secured by the bank

payment (for rent) guarantee

no need to give security in cash by the lessee to the lessor

payments by the lessee to the lessor secured by the bank

advance payment guarantee

in the event of goods non-delivery, the bank guarantees the disbursement of the advance payment made

the option to obtain an advance payment from the buyer

performance bond

the option of compensation in the event of supplies of sub-standard quality or contract non-performance

improved position for commission award by the buyer or a requirement for commission award

retention money guarantee

the option of compensation in the event that the seller fails to eliminate faults

the option to obtain retained money prior to technical warranty expiration

customs guarantee

the importer does not have to pay customs debt upon the goods release for customs procedure

the payment of import duty secured by the bank for the Customs Office



  1. submission of an application for a bank guarantee together with the documents stipulated therein
  2. agreement between the client and the bank about the liability securiting method and charges
Bank guarantee types

Bank guarantee types

1. bid bond
its submission is required by the tender caller to secure the event that the bidder fails to meet the bidding terms at the contract making, or withdraws from its offer during its binding period. The tender bidder is the applicant for the issue of this guarantee.

2. advance payment guarantee
the bank undertakes to repay the advance payment effected by the buyer to the seller in the case the seller fails to deliver the respective goods or delivers only a part of it. The seller is the applicant for the issuing of this guarantee.

3. payment guarantee
the bank takes over the guarantee for the debtor's payment upon the delivery of goods or services. The buyer is the applicant for the issuing of this guarantee.

4. performance bond (guarantee for the performance of contract/work)
is used to ensure the fulfilment of agreed contractual obligations. The bank may guarantee during the entire period of work performance or until the technical warranty expiration (warranty guarantee). The performance bond can represent an alternative for the purchaser/orderer for the release of the retained money (retention money guarantee). The seller/supplier/contractor is the applicant for the issuing of this guarantee.

5. customs guarantee
the bank undertakes to pay customs debts (customs duty, VAT, excise duty). The importer or customs approved guarantor is the applicant for the issuing of this guarantee.