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Guarantees

A Guarantee is a promise of payment from the Guarantor to the Beneficiary that the Guarantor will pay the beneficiary when the beneficiary submits certain documents or makes a specific demand to the Guarantor in a certain manner time or place.

Guarantees provide comfort to the beneficiary; in case the applicant fails to meet his obligations (either financially or by performance) as per the contract made between the applicant and the beneficiary, the beneficiary will have the guarantee to turn to for payment..

Having a guarantee issued in support of a client’s transaction can help the client grow and expand their business by postponing current payments for goods and/or services to a later date, provide comfort to buyers, allow clients to bid on transaction , without requiring that Bachmann & Welser’s clients tie up their available cash.

Bid/Tender Guarantee

Issued in support of an exporter’s bid to supply goods or services and, if successful, ensures compensation in the event that the contract is not signed.

Performance Guarantee

Issued as an undertaking to pay a certain sum to the buyer if the exporter fails to carry out the terms of the contract.

Advance Payment Guarantee

Gives protection to the buyer who has made an advance or progress payment to the exporter before the contract has been completed.

Warranty Guarantee

Provides a financial guarantee to cover the satisfactory quality or performance of goods or services supplied during a maintenance or warranty period.

Retention Guarantee

Guarantees the refund of released retention monies to the buyer, in the event of non-performance of the exporter’s obligations after the contract completion.

BACHMANN & WELSER LTD

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