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BANK GUARANTEES |
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  | Bank guarantee is designed for: |
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legal entities having their registered offices in the Slovak republic
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| Bank guarantee characteristics: |
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The bank guarantee is one of the most frequently used security instruments for reducing business risks. The bank guarantee is a written declaration from a bank, which guarantees to satisfy a creditor's (beneficiary) claim for a certain financial amount if a certain third party (debtor) does not meet a certain obligation or other condition specified in a letter of guarantee.
KB Bratislava provides the following types of the bank guarantee: |
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- for the payment of the tax documents (invoices)
- for the repayment of the financial loans
- for the payment of leasing installments
- other
- for submitted offers (tender bond, bid bond)
- for the return of an advance payment (advance payment guarantee, down payment guarantee)
- for the due performance of a contract (performance bond)
- for the return of a retention (retention bond)
- for the warranty periods (warranty bond)
- other non-transit operations (global, individual)
- for the carriers
- for rent payment
- for the company's obligations to the Pôdohospodárska platobná agentúra
- other
When doing business with specific countries (e.g. Arabian countries) so called counter guarantees are often required. In this case the bank guarantee for the final creditor is issued by the local bank on the basis of a counter guarantee from the debtor's own bank.
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| Bank guarantee benefits: |
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For the beneficiary (recipient of the bank guarantee)
- security of receiving funds if their business partner (bank guarantee applicant) fails to meet his/her obligations
- a quality security instrument for business transactions
For the bank guarantee client:
- cost savings (only the risk margin is paid, not price of the funds)
- positive effect on a company's cash-flow
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| Bank guarantee will allow you to: |
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receive immediate funds
If a payment guarantee has been issued on an existing receivable with deferred payment, you can immediately obtain funds by selling the receivable to the bank. -
obtain a deferral on the payment of financial obligations
Depending on the type of guarantee, you may be able to obtain a deferral on the payment of financial obligations, advance payment or retention against the bank guarantee provided. -
close a contract under more favorable conditions
Thanks to the bank guarantee, you will be able to negotiate better terms for your contract, because you will be able to offer your business partner a better quality security instrument.
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| How can you obtain more information about this product? |
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For further information on this product or to order it immediately, please contact your Relationship manager or write to us on our e-mail address koba@koba.sk.
