Bank guarantees

Does your business partner require a guarantee that you will deliver a contract in an agreed quality and quantity? Are you concerned that your customer will not pay for your goods or services? Make use of the services of UniCredit Bank, one of the leaders in providing bank guarantees. We will help you select a suitable type of guarantee and prepare its wording as per your requirements.

What are bank guarantees used for?

  • Essentially, any kind of business, payment, or goods or services delivery here or abroad can be secured owing to it.
  • Eliminating both the contractor’s and the customer’s risks (for instance, when a business partner does not want to refund an advance payment, fails to meet the contractual obligations or delivery deadline, withdraws from the contract, etc.).
  • Allowing you to negotiate more favourable conditions for the contract, because you provide your business partner with quality security of your obligations.
  • Hedging risks even outside trade and services (used, for instance, as a surrogate for “cash” within bail, auction collateral, etc.).
  • Saving the costs and improving the cash-flow of your company.

What do we do for you?

  • You will be supported by our dedicated team of bank guarantee specialists, working in line with the international guarantee rules issued by the International Chamber of Commerce (ICC).
  • We prepare the guarantee wording or review the guarantee text included in commercial contracts, including tailored and non‑standard guarantee wording reflecting the specific transaction and jurisdiction.
  • We assist you with the completion of the application for the issuance of a guarantee or a commitment.
  • Bank guarantees are typically issued in Slovak, Czech and English; other languages are available upon individual agreement, in either paper or electronic form.
  • Instructions for the issuance of a bank guarantee or for amendments to an existing bank guarantee may also be submitted electronically via internet banking or through the bank’s electronic communication tools.

 

Types of bank guarantees

A bank guarantee is created upon a written declaration of the issuer in a guarantee document that it shall satisfy the creditor under the guarantee document up to a certain financial amount provided the debtor fails to discharge a certain debt towards the creditor or provided other conditions set forth in the guarantee document are met. Guarantee documents must be in writing.

Bid Bond, Tender Guarantee: Covering a bidder’s commitment to adhere to the terms and conditions of its bid presented for tender. 

Performance Bond: Covering the contractor’s commitment to duly meet the terms and conditions of a business contract.

Advance Payment Guarantee: Covering the refund of advance payment made by a customer to the contractor should the contractor fail to meet its contractual obligations.

Retention Money Guarantee: Providing for the refund of retention money to a customer should the contractor fail to meet the contractual obligations arising from the contract within the warranty period.

Payment Guarantee: Providing for the fulfilment of a customer’s payment obligations arising from a business contract to the contractor.

Other types of guarantees: a guarantee for the guarantee period, guarantee for rent, guarantee for electronic tolls, guarantee for credit, guarantee in favour of the Agricultural Payment Agency, customs guarantee, guarantee for excise tax, guarantee for value-added tax.