Payment Guarantees

A Buyer holding contracts with its supplier for the regular supply of merchandise may have to support their payment obligations by providing a payment guarantee in favour of the supplier. The buyer instructs his bank for the issuance of a payment guarantee. In the event of a pre-defined default criteria, the buyer's bank, as its sole obligation, will execute payment in favour of the seller for a pre-determined amount upon the presentation of satisfactory claim documents under the said guarantee.

Suppliers may obtain financing based on Payment Guarantees issued to their favour by the buyer's bank.

Trade & Commodity Finance Teams together with Documentary Credits experts of GarantiBank International NV are not only providing straight-forward Payment Guarantee services but also mobilizing fast, accurate and tailor-made banking solutions built in and around such Payment Guarantees.

Bonds

Bonds are essentially guarantees issued for the account of a party who needs to fulfil contractual obligations towards its counterpart in a commercial relationship.

For instance, companies may be required to present bid bonds as a prerequisite for submitting bids to a tender. On the basis of such bid bonds, the beneficiary is guaranteed by the issuing bank against the bidder's failure to sign the granted contract as a result of a bidding process. Another example would be performance bonds, issued by banks as a guarantee in favour of a party requiring the contractor to meet specific contractual obligations.

By quickly arranging and submitting required bonds, suppliers/buyers may secure large contracts, which in turn may be the basis of a financing structure.

Trade & Commodity Finance Teams together with Documentary Credits experts of GarantiBank International NV are not only providing straight-forward Bond services but also mobilizing fast, accurate and tailor-made banking solutions built in and around such Bonds.