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Performance Guarantee

A performance guarantee ensures that the importer receives an agreed compensation if the exporter fails to meet their obligations towards the importer. For instance, such failure of performance may relate to delivery, function or quality. Typically, a performance guarantee covers 10-20% of the agreement amount.

Below are two common examples of a performance guarantee.

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

  • Performance 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 fulfil their obligations to supply (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 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.

  • Performance 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 fulfil their obligations to supply (description of goods/project) in accordance with (order/contract/offer 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.

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Retention Gurantee

A retention guarantee ensures that the exporter will pay back this amount if failing to meet their contractual obligations.

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Payment Guarantee

A payment guarantee ensures payment to the exporter if the importer does not fulfil their payment obligations.

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