A bank guarantee is an instrument that ensures the timely payment of goods/services or the fulfillment of other terms of the contract.
A bank guarantee can be local or international and provides:
- Assumption of the obligation of a debt in case of inability to pay customers;
- A contract based on which the obligation of another party is paid in case of inability to pay by the latter;
- A promise by one party to fulfill 'honor' the contractual obligations of another party who is the applicant of the guarantee.
This instrument ensures the fulfillment of the agreement, protecting the interests of the orderer (buyer/applicant) and the beneficiary (seller/orderer). In this way, your business is protected from unforeseen expenses and various delays.
- In the event that the buyer/applicant does not meet the agreed conditions, ProCredit Bank makes the payment within 5 (five) business days of the seller/beneficiary's first request for payment, after presentation of the documents specified in the guarantee.
- If the beneficiary of the guarantee does not deliver the goods or services according to the agreed conditions, he will not be able to submit the documents to the buyer's bank that prove delivery, quality and quantity and will not be able to receive payment.
The types of bank guarantees offered are:
- Payment guarantee which guarantees the execution of payment in favor of the seller in the event that the buyer does not comply with the terms of the contract.
- Tender guarantee creates the opportunity for the client to participate in open/public or private tenders where he secures the economic offer or the cooperation contract.
- Advance payment guarantee ensures the return of the prepayment if the ordering party of the bank guarantee does not meet the terms of the contract.
- Contract Guarantee or guarantee for fulfillment of delivery and quality terms ensures the execution of the agreement on time and with quality.
- Guarantee for the guaranteed period to provide funds reserved in cases of non-fulfillment of conditions.
- Customs guarantee to cover customs duties on the value of the imported goods and the relevant VAT.
