Guarantees and bonds
Confirming your ability to deliver
Sometimes your customer, and other counterparties, may need reassurance of your company’s ability to meet contract obligations.
Bonds and guarantees can be prepared in favour of your customer and other counterparties. They provide an irrevocable guarantee from us to make a payment, if you do not meet your contractual obligations as set out in the bond.
Benefits
- International acceptance - bonds can be issued and accepted in nearly every country in the world
- Prove your capability - if you are the exporter, a bond illustrates your ability to meet the terms of a contract, backed by us
- Promotes trade – by giving you the tools you need to develop your export business
- Demonstrate your financial strength – shows that you can meet your contractual obligations and settle accounts
- Efficient and secure – Bond, guarantee and standby letter of credit applications and amendments can be initiated using our online trade channel
Standby letters of credit
You can also arrange for a standby letter of credit to be issued in favour of your customers or others, to cover your contractual obligations. In some markets, such as the United States, standby letters of credit are legally required in lieu of bonds.
