Bid Guarantee

A bid guarantee ensures that the party inviting to a tender (the importer) receives an agreed compensation if a tenderer (the exporter) defaults on their obligations under an international tender. Often, a tender will not even be considered without a bid guarantee.

Below are two common examples of a bid guarantee.

To apply for a bid guarantee, please find an electronic application in Business Online/District to be completed and submitted.
  • Bid Guarantee - on demand

    Bid Guarantee - on demand

    Name and address of beneficiary

     

    Guarantee no.
    Amount
    Date of Expiry

    At the request of (name and address of applicant), we hereby guarantee you irrevocably for the above maximum amount to secure that they fulfil their obligations as tenderer in accordance with their bid covering (description of goods/project).

    Your claim(s), if any, duly made and presented to us under the guarantee, will be honoured on your first demand also stating that (name of applicant) have not fulfilled their above tender obligations towards you.

    Any demand for payment or request for extension under this guarantee must be made via authenticated SWIFT message through your bank confirming that the signatures on your signed written demand are legally binding upon your company.

    Where we have received no such claim by (expiry date) at the latest, we stand released from our liability under this guarantee.

    We will reduce the guarantee maximum by any such amount, as we have had to pay in order to meet your claim(s) duly made and presented under the guarantee.

    When the guarantee expires, please return this document to us.

  • Bid Guarantee - conditional

    Bid Guarantee - conditional

    Name and address of beneficiary

     

    Guarantee no.
    Amount
    Date of Expiry

    At the request of (name and address of applicant), we hereby guarantee you irrevocably for the above maximum amount to secure that they fulfil their obligations as tenderer in accordance with their bid covering (description of goods/project).

    If (name of applicant) object to our making payment under the guarantee, we will pay no sum of money before (name of applicant) and you are in agreement, or there is a judicial decision.

    Any demand for payment or request for extension under this guarantee must be made via authenticated SWIFT message through your bank confirming that the signatures on your signed written demand are legally binding upon your company.

    Where we have received no such claim by (expiry date) at the latest, we stand released from our liability under this guarantee.

    We will reduce the guarantee maximum by any such amount, as we have had to pay in order to meet your claim(s) duly made and presented under the guarantee.

    When the guarantee expires, please return this document to us.

Gateway


Solutions

Guarantees

A bank guarantee is a contractual agreement mitigating risk and reducing the loss if things do not go as planned, allowing you and your international trading partner do business more safely.

Advance Payment Guarantees

Advance payment guarantees are used primarily in connection with contracts for substantial capital goods under which it has been agreed that the importer will pay part of the purchase amount in advance.

Read more

Performance Gurantee

A performance guarantee ensures that the importer receives an agreed compensation if the exporter fails to meet their obligations towards the importer.

Read more