Bonds, guarantees and standby letters of credit | NatWest

Bonds, Guarantees & Standby Letters of Credit

Speak to a trade specialist to discuss how we can support your business in meeting its trade obligations

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When companies are buying and selling both domestically or internationally they may seek additional financial assurances from their customer.

This can be realised through the provision of a Bond, Guarantee or Standby Letter of Credit. 

Bonds, Guarantees and Standby Letters of Credit explained

Bank Guarantees (also referred to as Bonds) provide companies with additional protection in respect of their customers performance or financial obligations. We can issue Guarantees on your behalf or receive and validate Guarantees issued by other banks in your favour. 

A Standby Letter of Credit is similar to a Bond or Guarantee. It is the primary guarantee instrument used in North America.

Here are the benefits
Provides security

Provides you with security that your customer can meet their financial commitments.

Safe and efficient

Provides a safe and efficient way to mobilise your commercial relationships with your trading partners.

Here are the different types of Bonds and Guarantees

There are a wide range of different Bonds and Guarantees that can be issued depending on a customer’s specific requirements. They can be either performance related, to cover failure to perform under a contractual obligation, or they can support a financial obligation. 

Examples of Bonds and Guarantees include:

  • Bid or Tender Bond  - issued by the supplier in support of a contractual tender.  
  • Performance Bond or Guarantee – issued by the supplier in order to support their performance  obligations under the commercial contract.  
  • Advance Payment  / Prepayment  - issued by the supplier when the buyer has provided a down payment for the supply of goods or services. 
  • Customs Bonds / Custom Duty Deferment Guarantee / H.M. Customs & Excise Guarantee  - allows a company to defer payment of duty or tax.
  • Payment – the supplier receives a Guarantee from the buyer to support their financial obligations under a commercial contract.
Ready to apply

Let’s get started. To apply fill out the form on the link below.

Alternatively, you can always talk to your relationship manager or give us a ring on the number below.

Application subject to customer credit line facilities. Fees and charges will apply for these services.

Apply Online 

To apply off line you can download an application form:

Contact number. 0345 303 0077

Text Relay 18001 0345 303 0077

Lines are open 9.00am-5.00pm, Monday to Friday (except public holiday).

Calls may be recorded and call charges from residential, business and mobiles vary, depending on your telephone operator’s tariff.

Business and Relationship Managers are available 9am – 5pm, Monday to Friday.

 

Add your signposting title here… Factsheet

Bank Guarantees (also referred to as bonds or Standby Letters of Credit) provide both buyers and sellers in a trade transaction with reassurance that either performance or financial obligations will be met. We can issue guarantees on your behalf or receive and validate guarantees issued by other banks in your favour.

Bank Guarantees factsheet
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