Bank guarantee
Utilize an ability to secure your business with our bank guarantee.
Comprehensive offer of product services
More favorable conditions for contracts with your business partners
Option to minimize your business risks
Enhance your credibility with business partners
How to get a guarantee
Would you like to get a bank guarantee? Learn what is necessary for approval of a guarantee:
- an application for a bank guarantee along with the specified attachments,
- an agreement between the bank and the borrower on the method of securing liabilities and on fees.
Benefits of a bank guarantee
Stabilize your business activities and minimize business risks with a bank guarantee.
- With a guarantee you enhance your credibility with business partners (the beneficiary of the guarantee).
- A bank guarantee allows you to negotiate more favorable commercial conditions with your business partners (postponed payment, advance payment, release of retention money, substitution of cash in the account of a contracting authority or lessor of commercial premises, etc.).
- In international trade, guarantees can be defined according to the Uniform Rules for Demand Guarantees issued by the International Chamber of Commerce in Paris and revised in 2010, Publ. 758, which incorporates international commercial practices.
If you are interested in this product, please contact your business advisor in the Tatra banka branch or relationship manager at the Tatra banka headquarters.
Details
A bank guarantee is a written declaration by a bank under which the bank irrevocably commits to pay to the creditor (beneficiary of the guarantee) a certain sum according to the content of the letter of guarantee if the debtor (the client/guarantee applicant) fails to fulfill the obligation secured by the bank guarantee.
| Guarantee type | Benefit for the buyer | Benefit for the seller |
|---|---|---|
| in a tender (bid bond) | ensures a range of serious bids | no need to pay a deposit in cash to the tender caller/buyer |
| payment guarantee | option to have an invoice maturity postponed | payments for supplies secured by the bank |
| payment (for rent) guarantee | the lessee does not need to pay a deposit in cash to the lessor | the lessee’s payments to the lessor are secured by the bank |
| advance payment guarantee | if the delivery of goods fails, the bank guarantees the refund of the advance payment made | option to get an advance payment from the buyer |
| performance bond | option of compensation in the event of poor-quality supplies or a failure to perform the contract | Provides a better position to get a contract from the buyer or a to meet the requirement for getting a contract |
| retention money guarantee | option of compensation in the event that the seller fails to eliminate faults | option to have the retained money released before the technical warranty expires |
| customs guarantee | an importer does not have to pay the customs fees upon release of goods for a customs procedure | the payment of the customs fees to the customs office is secured by the bank |
Types of bank guarantees
Choose one of the five types of bank guarantees according to your business needs.
- Bid bond
The caller of a tender requires this to be submitted to secure the transaction if the bidder fails to meet the bidding terms when concluding the contract or withdraws the offer during its binding period. The tender bidder is the applicant for this guarantee. - Advance payment guarantee
The bank undertakes to refund the advance payment made by a buyer to a seller if the seller fails to or only partially delivers the respective goods. The seller is the applicant for this guarantee. - Payment guarantee
The bank assumes a guarantee for the debtor's payment upon the delivery of goods or services. The buyer is the applicant for this guarantee.
- Performance bond
It is used to ensure the fulfillment of agreed contractual obligations. The bank may provide the guarantee throughout the work performance period or until expiration of the technical warranty (warranty guarantee). A performance bond may be an alternative for the buyer/customer to release the retention money (retention money guarantee). The seller/supplier/contractor is the applicant for this guarantee. - Customs guarantee
Under this guarantee, the bank undertakes to pay the customs fees (customs duty, VAT, excise duty). The importer or guarantor approved by the customs authorities is the applicant for this guarantee.
Frequently Asked Questions
A bank guarantee is a written statement by the bank that the bank irrevocably undertakes to pay the creditor (the beneficiary of the guarantee) a certain amount of money according to the contents of the guarantee certificate if the debtor (the client / the guarantor of the guarantee) fails to fulfill the obligation guaranteed by the guarantee.
https://www.tatrabanka.sk/en/business/bank-guarantee/