Bank guarantee in the Savings Bank-Bargaining is always fraught with risk as one of the parties may be unable to meet its financial obligations. Avoid such a situation will help the bank guarantee. Approach to the selection of the bank must be serious because of its reliability will depend on your reputation. Let’s look at the conditions under which you can get a bank guarantee.
The bank guarantee is designed to help companies be prepared to take part in the tender and sign a lucrative contract, as well as ensure its commitment to tax and customs bodies on budget payments. With the help of a bank guarantee company reaffirms its solvency, but not at the expense of their own or borrowed in assets, and a written guarantee by the bank. This is a kind of promise to the bank (the guarantor) to pay your partners (beneficiaries), if your company (principal) can not meet its obligations. Is it worth noting that the guarantee of a reliable partner as a key to the success of your business. And to the choice of a credit institution is to approach carefully.
How to choose a bank to obtain a bank guarantee?
First we need to examine the conditions under which various banks are willing to provide guarantees. Firstly, is the sum of the guarantee. In many banks the maximum size is determined individually, depending on the company’s financial stability. Next you need to learn the value of the consideration for the issuance of bank guarantees, as a rule, it is 1-5%. An important parameter – the interest rate in the event of a warranty case, ie in the case of payment of sums of money in the bank your obligations. This means that if your company is still not able to meet its financial or other obligations, the aid will come your bank. It is designed with your partners, and the percentage of the provision of this service is 10-30%.
Term of payment of compensation is usually a few months. Also, when choosing a bank should be taken to ensure that it may be necessary to obtain a bank guarantee. As a rule, it is secured by movable and immovable property or surety. However, many banks provide the warranty.
Relationship in the circumstances provided for guarantee
If, however, the warranty event occurs, the Savings Bank is obliged to pay the required amount to the beneficiary. The aggrieved party (customer service / product that has not received them or received inadequate quality) must file their claims in writing, must necessarily be indicated how the Principal is in breach of its obligations. Documents must be submitted before the expiry of the bank guarantee. Refusal to pay the Savings Bank may be only in two cases: the beneficiary’s claim does not meet the warranty or the warranty expired.
And in order to avoid difficulties with the bank guarantee, choose a certified bank as of this choice depends on your reputation in the business community. With the proper use of this tool, you can significantly increase profits for your organization.