If you do not trust a partner, are unsure of their solvency or ability to fulfill contractual obligations, require a payment deferral or advance payment – we offer to arrange a bank guarantee:

Tender Guarantee: Issued at the request of the bidder to the party announcing the tender and ensures the fulfillment of the bidder's obligations arising from their submitted tender offer.

Performance Bond: Issued at the request of a supplier of goods or services to a customer as a guarantee of the proper fulfillment of the contract conditions by the supplier, agreed upon between the supplier and the customer.

Advance Payment Guarantee: Issued at the request of the seller of goods or services to the buyer, usually in the amount of the advance received under the contract between the seller and buyer, and ensures the return of the paid advance amount.

Payment Guarantee: Issued at the request of the buyer in favor of the seller and ensures the buyer's fulfillment of their payment obligations for the delivered goods/services, in accordance with the contract concluded between the seller and the buyer.

Loan Repayment Guarantee: Issued at the request of the borrower by the organization that provided the loan, ensuring the borrower's fulfillment of their obligations to the lender to return the principal amount and/or interest on the loan within the specified time frames.

Standby Letter of Credit: Like a guarantee, it secures the obligation of payment or fulfillment of other contractual obligations. Standby letters of credit are used to finance international trade with countries where the use of bank guarantees in trade transactions is prohibited (USA), where the documentary nature of guarantees is forbidden, or when conducting operations with international organizations (European Bank for Reconstruction and Development, World Bank, etc.). Unlike guarantees (which are usually subject to the laws of the issuing country), standby letters of credit are governed by the Uniform Customs and Practice for Documentary Credits (ICC Publication No. 600) — an international document that is mandatory for execution.

Benefits for the Seller

a guarantee is provided for the proper fulfillment of the buyer's contractual obligations as described in the contract terms
the possibility of receiving an advance payment for goods or services
expand the circle of counterparties

Advantages for the Buyer

increase in amount and extension of payment deferral for purchased products
obtaining a payment deferral under the contract
generating high profits from alternative use of funds
effective management of financial resources

Requirements for Guarantee Issuance

100% cash coverage or collateral (real estate, movable property, equipment, money in a savings account)
Copy or draft of the tender documentation, trade contract
Original application for guarantee issuance

Scheme of Securing Contractual Obligations Using Guarantees

tf_scheme_1

Contract/Agreement stipulating obligation collateral through a bank guarantee;
Principal's request for the issuance of a bank guarantee;
Issuance of a direct bank guarantee by the Principal's bank in favor of the Beneficiary; If the Beneficiary requires confirmation from their (or a third) bank, the Principal's bank arranges for a counter-guarantee (confirmation):
Principal bank's request to the Beneficiary's bank for issuing a Bank Guarantee in favor of the Beneficiary against the counter-guarantee from the Principal's bank;
Issuance of the guarantee in favor of the Beneficiary.