Bank guarantee

Utilize an ability to secure your business with our bank guarantee.

Comprehensive offer of product services

Favorable contract conditions with a bank guarantee

More favorable conditions for contracts with your business partners

Option to minimize your business risks

Enhancing your credibility with business partners

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.

With a bank guarantee you can stabilize your business activities

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

1. What is a bank guarantee?

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.