Bonds, Guarantees & Standby Letters of Credit
Speak to a trade specialist to discuss how we can support your business in meeting its trade obligations
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 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
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.