Bank Guarantee
Bank Guarantees are the most important instruments for protecting companies against non-performance of underlying contracts or to ensure other party's ability to meet its financial obligations.
Guarantees can be used for different purposes such as:
- Safeguard against submission of inadequately thought-out tenders
- Reinforcement of contractual relationship between buyer and seller
- Deter faults and act as security for the advance payment
- Make sure that the contractual obligation will be met on time
- A back-up security for frequent business dealings between two parties
The most commonly sought types of guarantees are:
Tender Guarantee - Bid Bond
These are designed to deter companies from making a tender for a project and then not signing the contract or not providing the required performance bond. This is an alternative for cash deposits required as a condition of the tender.
With NCB's bid bond, you can establish your credibility with your client without tying up your cash resources.
Performance Guarantee
Performance Guarantees are required to ensure that goods are delivered or services rendered in accordance with the terms of the contract.
A claim may be made under a performance guarantee on the grounds of defects, delays or if the contractor has become financially incapable of performing the entire contract (insolvency, bankruptcy).
NCB's performance guarantee assures your client of your ability to perform and meet contract requirements.
Advance Payment Guarantee
The purpose of this Guarantee is to ensure that the advance payment is used in accordance with the intentions of the contract between the buyer and seller and also helps to deter defaults and acts as security for the advance payment.
We use our correspondent banking network to issue or receive guarantees on your behalf in a speedy and professional manner.
An experienced team of NCB's Trade Specialists is able to advise on the most appropriate structure and text of guarantees which you require to meet your business requirements.