![]() | By receiving a bank guarantee, the risk of financial and business credit rating of your business partner is eliminated. If the partner does not fulfill their contractual obligation, you, as the Guarantee Beneficiary, can demand payment from the Issuing Bank (the Guarantor). It is therefore important that you only accept guarantees issued by banks with the appropriate credit rating. |
![]() | A received guarantee reduces the risk of failure to pay and risks of not having other contractual obligations fulfilled within the agreed deadlines. |
![]() | The wording of the guarantee is important as well. At Nova KBM, we recommend that you accept guarantees subject to the Uniform Rules for Demand Guarantees (URDG) issued by the International Chamber of Commerce. This way, you will receive a guarantee that will be treated in a standardized and uniform manner by all parties to the guarantee transaction (i.e. the Applicant, the Guarantor, the Beneficiary) and in different parts of the world, regardless of any specific characteristics of local law. |
![]() | By obtaining a guarantee from a bank issued to the benefit of your business partner, you demonstrate to your business partner that your business is earnest and that you are financially stable. |
![]() | In case of public procurement or other tenders, obtaining a bank guarantee is, in most cases, one of the basic requirements to participate in the tender. |
payment guarantee (Payment Guarantee, Zahlungsgarantie, Garanzia di pagamento), |
payment of import duties, taxes, and charges (customs guarantee), |
insurance of goods in transit (transit guarantee), |
the seriousness of the offer (offer guarantee, Tender/Bid Bond, Bietungsgarantie, Garanzia di offerta), |
refund of the advance (advance guarantee, Advance Payment Guarantee, Anzalungsgarantie, Garanzia di résumo d'acconto), |
good execution of works (performance guarantee, Performance Guarantee/Bond, Erfuellungsgarantie, Garanzia di buona execución), |
rectification of errors during the warranty period or guarantee for the retained amount (Guarantee for Warranty Obligations/Warranty Guarantee/Retention Money Guarantee, Gewaehrleistungsgarantie, Garanzia di buon funcionzione), |
other service guarantees. |