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Payment Guarantee

A payment guarantee ensures payment to the exporter if the importer does not fulfil their payment obligations – see below samples.

A payment guarantee can also be issued in the form of an endorsement on a draft, also known as an “aval.” In such cases, Danske Bank guarantees the payment of the draft.

Below are two common examples of a payment guarantee.

To apply for a payment guarantee, please find an electronic application in District to be completed and submitted.

  • Payment 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 our clients pay you for (description of goods/project) in accordance with (order/contract/offer etc).

    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 payment 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.

  • Payment  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 our clients pay you for (description of goods/project) in accordance with (order/contract etc).

    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.

Read more

Bid Guarantees

Here you will find two common examples of a bid guarantee.

Read more

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

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