• Bank Guarantee

    Payment and non-payment guarantees cover various commercial risks for a wide range of creditors.

Beneficiary’s security

Receive payment if a guaranteed obligation is not met.

Benefits

Improve the terms and conditions of your business relationships.

As needed

Arrange a custom made guarantee.

Why KB?

Let us help

We provide advisory services and not just when negotiating a contract.

Risk mitigation

Make your business relationships more reliable.

Great deals

Negotiate better contract terms with our guarantee.

How to get this product?

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At a branch

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About Bank Guarantees

  • One of the most used security instruments for reducing commercial risks
  • Written declaration of the bank in a letter of guarantee that it will meet a creditor’s claims (beneficiary’s claims) up to a particular limit if a third party (debtor) does not meet their obligations, provided that the creditor meets the conditions specified in the letter of guarantee
  • Can be used to offer better contractual terms because of the high-quality security that the business partners get. Deferred payment options, down payments or retention monies can all be covered by the bank guarantee.
  • Security for the bank guarantee beneficiary – guaranteed payment if the business partner does not meet their obligations

You might also like to know

  • We provide payment guarantees for:
    • Invoice payments
    • Loan repayments
    • Lease payments
    • Rent payments
    • Customs duty payments
    • Excise tax payments
    • Other
  • We provide non-payment guarantees for:
    • Tenders (tender Guarantee, bid bond)
    • Advance payment guarantee/down payment guarantees
    • Performance bonds
    • Retention bonds
    • Warranty bonds
    • Other
  • We provide customs guarantees for:
    • Transit operations
    • Operations other than transit
  • We provide counter guarantees:
    • The beneficiary’s local bank providesbank guarantee for the final beneficiary based on the debtor’s bank guarantee. Counter guarantees are used for transactions in specific areas (e.g. Arab countries).
  • We also provide complementary service:
    • Advisory services when negotiating a contract
    • Assistance with negotiating the conditions for issuing a bank guarantee
    • Assistance  with drafting  a letter of guarantee
    • Advice of a bank guarantee provided by another bank
    • Written commitments to issue a bank guarantee
Scheme of Bank Guarantee

1) Contract, conditions of the tender (public contract) etc.
2) Application for provision of a Bank guarantee
3a) Sending of the letter of guarantee directly to the beneficiary
3b) Sending of the letter of guarantee via the advising bank