Bonds and Guarantees

Bonds and guarantees

Bonds and guarantees can support your international trading activities by providing a commitment to your suppliers, and other counterparties, that they will be paid in the event you are unable to comply with the related contract. They give your international suppliers the confidence to deal with you.

Standby letters of credit

These are often used in lieu of guarantees and must be used in some legal jurisdictions, such as the United States. As an importer, you can arrange standby letters of credit in favour of your supplier and other counterparties.

Benefits

• Personalised solution - can generally be drafted to mirror the underlying contract and most importantly, to satisfy your and your trading partner’s needs
• Accepted worldwide - issued by NatWest and reissued locally by RBS through its global network or by banking partners in other countries
• Demonstrates your financial strength - shows that you can meet your contractual obligations and settle accounts
• Promotes business - bonds and guarantees promote trade by helping customers to develop international business
• Efficient and secure - Bond, guarantee and standby letter of credit applications and amendments can be initiated using our online trade channel